tire tread performance resins market 2020 past-present-future · page 2 of 81 rubber chemical...

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Rubber Chemical Consultants Ltd | 9, Harman Road, Sutton Coldfield, West Midlands, B72 1AH UK Registered Company, no: 06863349 The statements, opinions and/or recommendations contained herein are based on information believed to be reliable. However, Rubber Chemical Consultants Ltd makes no warranty or guarantee of accuracy or completeness in connection therewith, nor, with respect to any proposed application or course of action. Information included in this report is Confidential and shall not be copied, unless otherwise designated in the report or by written permission from Rubber Chemical Consultants Ltd. © Rubber Chemical Consultants Ltd 2018.

Tire Tread

Performance Resins Market

2020 Past-Present-Future

of 81

Report Number: RCCL201

Issue Date: 9th July 2020

Company1: 1 This report is licensed for use within the designated company only. Distribution of this report, either

fully or partially, outside of the designated company is strictly prohibited.

Rubber Chemical Consultants Ltd

of 81 Rubber Chemical Consultants Ltd Tire Tread Performance Resins Market 2020

RCCL201 9th July 2020


Tire Tread Performance Resins Market 2020

1 CONTENTS

2 Executive Summary ......................................................................................................................... 8

2.1 Scope ....................................................................................................................................... 8

2.2 Objectives ................................................................................................................................ 8

2.3 Market Drivers ......................................................................................................................... 9

2.4 Market Volumes..................................................................................................................... 11

2.5 Market Values ........................................................................................................................ 12

2.6 Industry Outlook .................................................................................................................... 13

3 Introduction .................................................................................................................................. 14

3.1 Definitions, Abbreviations and Nomenclature ........................................................................ 14

3.2 Scope ..................................................................................................................................... 16

3.3 Objectives .............................................................................................................................. 16

3.4 Information Sources ............................................................................................................... 17

3.5 Assumptions .......................................................................................................................... 17

4 Methodology ................................................................................................................................. 18

4.1 General Reporting Principles .................................................................................................. 18

4.2 Consumer-Up Analysis ........................................................................................................... 18

4.2.1 Key Parameters .............................................................................................................. 19

4.2.2 Consumer Plant Parameters ........................................................................................... 19

4.2.3 Product Technology Parameters ..................................................................................... 19

4.2.4 Market Parameters......................................................................................................... 20

4.3 Market Volumes for Tire Chemicals ........................................................................................ 22

4.3.1 Consumer-Up Analysis .................................................................................................... 22

4.3.2 Tire Parameters .............................................................................................................. 24

4.3.3 Tire Utilisations .............................................................................................................. 24

4.3.4 Reported Values ............................................................................................................. 26

4.4 Market Values for the Tire Segment ....................................................................................... 26

4.4.1 Regional Valuations ........................................................................................................ 26

4.5 Data Validation ...................................................................................................................... 27




5 Tire Tread Performance Resin Manufacturing Landscape ............................................................... 28

5.1 Industry Overview .................................................................................................................. 28

5.2 Raw Materials ........................................................................................................................ 29

5.3 Resin Types ............................................................................................................................ 29

5.4 Key Manufacturers ................................................................................................................. 30

5.4.1 Financial Performance .................................................................................................... 30

5.4.2 Arakawa ......................................................................................................................... 31

5.4.3 Cheeshine Chemicals ...................................................................................................... 32

5.4.4 Cray Valley (Total) .......................................................................................................... 32

5.4.5 DRT ................................................................................................................................ 32

5.4.6 Eastman ......................................................................................................................... 33

5.4.7 ENEOS ............................................................................................................................ 33

5.4.8 ExxonMobil .................................................................................................................... 34

5.4.9 Kolon Industries.............................................................................................................. 34

5.4.10 Kraton Corporation......................................................................................................... 34

5.4.11 Rütgers Novares ............................................................................................................. 35

5.4.12 Yasuhara Chemical ......................................................................................................... 35

5.4.13 Zeon Corporation ........................................................................................................... 35

5.4.14 Other Manufacturers ...................................................................................................... 35

5.4.15 Key TPR Resin Manufacturer Trends ............................................................................... 36

5.5 Tire Tread Performance Resin Developments ......................................................................... 36

6 Quantitative Tire Market Drivers.................................................................................................... 38

6.1 Tire Types .............................................................................................................................. 38

6.1.1 PC and SUV ..................................................................................................................... 39

6.1.2 Motorcycle and Scooter Tires ......................................................................................... 42

6.2 Changing Vehicle Technologies (Drivetrain) ............................................................................ 43

7 Qualitative Tire Market Drivers ...................................................................................................... 45

7.1 Historical Perspective ............................................................................................................. 45

7.2 Evolution of High Value Added Products ................................................................................ 45

7.2.1 PC and SUV ..................................................................................................................... 45

7.2.2 Motorcycle and Scooter.................................................................................................. 47

7.3 Market Positioning ................................................................................................................. 47




7.3.1 Manufacturer’s Tier Level ............................................................................................... 47

7.3.2 OE Market ...................................................................................................................... 48

7.3.3 RP Market ...................................................................................................................... 48

7.4 Geographical Influences ......................................................................................................... 48

7.4.1 Performance Requirements ............................................................................................ 48

7.4.2 Compounding Differences .............................................................................................. 48

7.5 External Drivers ...................................................................................................................... 49

7.5.1 Tire Labelling .................................................................................................................. 49

7.5.2 Sustainable Developments ............................................................................................. 50

7.6 Competing Technologies ........................................................................................................ 51

7.7 TPR Related Patent Review for Selected Top Tire Manufacturers............................................ 53

7.8 TPR Related Tire Brand Analysis for Selected Top Tire Manufacturers .................................... 61

8 Tire Tread Performance Resin Market Volumes 2011 to 2040 ........................................................ 65

8.1 Totals for All Resin Types ........................................................................................................ 65

8.1.1 Global ............................................................................................................................. 65

8.1.2 Regional ......................................................................................................................... 65

8.2 Totals by Resin Type ............................................................................................................... 66

8.2.1 Global ............................................................................................................................. 66

8.2.2 Regional ......................................................................................................................... 66

8.3 Totals by Tire Type ................................................................................................................. 69

8.3.1 Global ............................................................................................................................. 69

8.4 Totals by Tire Subtype ............................................................................................................ 69

8.4.1 Global ............................................................................................................................. 69

8.5 Competitive Materials ............................................................................................................ 71

8.5.1 Global ............................................................................................................................. 71

9 Tire Tread Performance Resins Market Prices & Market Values ..................................................... 72

9.1 Regional Market Prices ........................................................................................................... 72

9.1.1 APAC .............................................................................................................................. 72

9.1.2 Europe............................................................................................................................ 72

9.1.3 USMCA ........................................................................................................................... 73

9.2 Market Values ........................................................................................................................ 73

9.2.1 All Resin Types ................................................................................................................ 73




9.2.2 By Resin Type ................................................................................................................. 75

10 Concluding Remarks................................................................................................................... 78

10.1 Key Top Level Findings ........................................................................................................... 78

10.2 Future Considerations ............................................................................................................ 79

10.3 Extended Client Analysis ........................................................................................................ 79

11 Appendices ................................................................................................................................ 80

11.1 Market Segmentation and Sub Segments ............................................................................... 80

12 Additional Documentation ......................................................................................................... 81

List of Figures

Figure 2.1 - PC + SUV Regional Tire Production Growth 2011 to 2040 ...................................................... 9

Figure 2.2 - PC and SUV Tire Production Growth by Subtype 2011 to 2040 .............................................. 9

Figure 2.3 - Global TPR Market Volume by Type 2011 to 2040 ............................................................... 11

Figure 2.4 - Regional Market Values 2017 to 2040 ................................................................................. 12

Figure 4.1- 'Consumer-Up' Market Analysis ........................................................................................... 18

Figure 4.2- Consumer Plant Parameters ................................................................................................. 19

Figure 4.3 - Product Technology Parameters .......................................................................................... 20

Figure 4.4- Market Utilisation Parameters ............................................................................................. 21

Figure 4.5 - Extended Model for Tire Segment ....................................................................................... 23

Figure 5.1 - Simplified Schematic for Raw Material to Resin Type .......................................................... 28

Figure 5.2 - EBIT/Sales Revenue for Selected TPR Manufacturers & Business Segments ......................... 30

Figure 5.3 - Kraton Corporation's Chemical Segment Financials ............................................................. 31

Figure 5.4 - RCCL Estimates for Kraton TPR Sales & Volumes .................................................................. 31

Figure 6.1 - Tire Unit Evolution by Region All Tire Types 2011 to 2040 ................................................... 38

Figure 6.2 - Tire Unit Evolution by Tire Type 2011 to 2040 ..................................................................... 39

Figure 6.3 - PC and SUV Tire Unit Evolution 2011 to 2040 ...................................................................... 40

Figure 6.4 – PC and SUV HP AS Tire Unit Evolution 2011 to 2040 ........................................................... 40

Figure 6.5 - PC and SUV HP SM Tire Unit Evolution 2011 to 2040 ........................................................... 41

Figure 6.6 - PC and SUV UHP AS Tire Unit Evolution 2011 to 2040 .......................................................... 41

Figure 6.7 - PC and SUV UHP SM Tire Unit Evolution 2011 to 2040......................................................... 41

Figure 6.8 - PC and SUV WT and AW Tire Unit Evolution 2011 to 2040 ................................................... 42

Figure 6.9 - Motorcycle and Scooter Tire Unit Evolution 2011 to 2040 ................................................... 42

Figure 6.10 – PC and SUV OE Tire Demand by Vehicle Drivetrain 2011 to 2040, millions ........................ 43

Figure 6.11 – PC and SUV RP Tire Demand by Vehicle Drivetrain 2011 to 2040, millions ........................ 44

Figure 7.1 - PC and SUV Subtype Differentiation Overview .................................................................... 46

Figure 7.2 - Tire Labelling Status by Region ............................................................................................ 49




List of Tables

Table 2.1 - Tire Tread Performance Resin Categorisation & Examples ...................................................... 8

Table 2.2 - Global TPR Market Volume 2011 to 2040 ............................................................................. 11

Table 2.3 - Competitive Material Estimate ............................................................................................. 11

Table 2.4 - Estimated Impact of Competitive Materials .......................................................................... 11

Table 2.5 - Average 2019 Delivered Regional Pricing, $/MT ................................................................... 12

Table 2.6 - Global Market Value for All TPR Types 2019 to 2040 ............................................................ 12

Table 3.1 - Definitions, Abbreviations and Nomenclature (A to L) .......................................................... 14

Table 3.2 - Definitions, Abbreviations and Nomenclature (M to Z) ......................................................... 15

Table 3.3 - Tire Tread Performance Resin Categorisation & Examples .................................................... 16

Table 4.1- Future Year Projections ......................................................................................................... 22

Table 4.2 - Tire Parameters .................................................................................................................... 24

Table 5.1 - Arakawa's TPR Products ....................................................................................................... 31

Table 5.2 - Cheeshine Chemical's TPR Products ...................................................................................... 32

Table 5.3 - Cray Valley's TPR Products .................................................................................................... 32

Table 5.4 - DRT's TPR Products............................................................................................................... 32

Table 5.5 - Eastman's TPR Products ....................................................................................................... 33

Table 5.6 - ENEOS' TPR Products ............................................................................................................ 33

Table 5.7 - ExxonMobil's TPR Products................................................................................................... 34

Table 5.8 - Kolon Industries' TPR Products ............................................................................................. 34

Table 5.9 - Kraton's TPR Products .......................................................................................................... 34

Table 5.10 - Rutger Novares' TPR Products ............................................................................................ 35

Table 5.11 - Yasuhara Chemical's TPR Products ...................................................................................... 35

Table 5.12 - Zeon Corporation's TPR Products........................................................................................ 35

Table 6.1 – PC and SUV Standard Tire Unit Evolution 2011 to 2040 ........................................................ 40

Table 6.2 - Motorcycle Radial Tire Unit Evolution 2011 to 2040 ............................................................. 42

Table 7.1 - Manufacturer's Tier Level ..................................................................................................... 47

Table 7.2 - Tire Company Sustainable Targets (Most Recent Publication) ............................................... 50

Table 7.3 - Top Tier Manufacturers' Eco Labelled Tire Examples (non-exhaustive) ................................. 51

Table 7.4 - Bridgestone TPR Related Patents .......................................................................................... 54

Table 7.5 - Continental's TPR Related Patents ........................................................................................ 55

Table 7.6 - Goodyear's TPR Related Patents ........................................................................................... 55

Table 7.7 - Hankook's TPR Related Patents ............................................................................................ 56

Table 7.8 - Kumho's TPR Related Patents ............................................................................................... 56

Table 7.9 - Michelin's TPR Related Patents ............................................................................................. 57

Table 7.10 - Pirelli's TPR Related Patents ............................................................................................... 57

Table 7.11 - Sumitomo's TPR Related Patents ........................................................................................ 58

Table 7.12 - Toyo's TPR Related Patents ................................................................................................ 58

Table 7.13 - Yokohama's TPR Related Patents ........................................................................................ 59

Table 7.14 - Resins Mentioned by Tire Company Patents (Non-exhaustive) ........................................... 59

Table 7.15 - Bridgestone's TPR Related Brands ...................................................................................... 61

Table 7.16 - Continental's TPR Related Brands ....................................................................................... 61

Table 7.17 - Goodyear's TPR Related Brands .......................................................................................... 62




Table 7.18 - Hankook's TPR Related Brands ........................................................................................... 62

Table 7.19 - Kumho's TPR Related Brands .............................................................................................. 63

Table 7.20 - Michelin's TPR Related Brands ............................................................................................ 63

Table 7.21 - Pirelli's TPR Related Brands ................................................................................................ 63

Table 7.22 - Sumitomo's TPR Related Brands ......................................................................................... 64

Table 7.23 - Toyo's TPR Related Brands ................................................................................................. 64

Table 7.24 - Yokohama's TPR Related Brands ......................................................................................... 64

Table 8.1 - Global Market Volume for All TPR Types 2011 to 2040 ......................................................... 65

Table 8.2 - Regional Market Volume for All TPR Types 2011 to 2040 ...................................................... 65

Table 8.3 - Global Market Volume by TPR Type 2011 to 2040 ................................................................ 66

Table 8.4 - Regional Market Volume for AMS Types 2011 to 2040 ......................................................... 66

Table 8.5 - Regional Market Volume for C5 Types 2011 to 2040............................................................. 67

Table 8.6 - Regional Market Volume for C9 Types 2011 to 2040............................................................. 67

Table 8.7 - Regional Market Volume for H-DCPD Types 2011 to 2040 .................................................... 68

Table 8.8 - Regional Market Volumes for Terpene Types 2011 to 2040 .................................................. 68

Table 8.9 - Total Market Volume by Generic Tire Type 2011 to 2040 ..................................................... 69

Table 8.10 - Total Market Volume by PC Subtype 2011 to 2040 ............................................................. 69

Table 8.11 - Total Market Volume by SUV Subtype 2011 to 2040 ........................................................... 70

Table 8.12 - Total Market Volume by MCSCTR Subtype 2011 to 2040 .................................................... 70

Table 8.13 - Global Market Volume for Competitive Materials 2011 to 2040 ......................................... 71

Table 8.14 - Estimated Impact of Competing Technologies (BEV Tire Development) .............................. 71

Table 9.1 - Average 2017 to 2019 Prices by TPR Type for APAC .............................................................. 72

Table 9.2 - Average 2017 to 2019 Prices by TPR for Europe .................................................................... 72

Table 9.3 - Average 2017 to 2019 Prices by TPR Type for USMCA ........................................................... 73

Table 9.4 - Global Market Value All TPR Types 2019, 2030, 2040 ........................................................... 73

Table 9.5 - Global Market Value by TPR Type 2019, 2030, 2040 ............................................................. 74

Table 9.6 - Regional Market Values All TPR Types 2019, 2030, 2040 ....................................................... 74

Table 9.7 - Regional Market Values for AMS Types 2019, 2030, 2040 ..................................................... 75

Table 9.8 - Regional Market Values for C5 Types 2019, 2030, 2040 ........................................................ 75

Table 9.9 - Regional Market Values for C9 Types 2019, 2030, 2040 ........................................................ 76

Table 9.10 - Regional Market Values for H-DCPD Types 2019, 2030, 2040 .............................................. 76

Table 9.11 - Regional Market Values for Terpene Types 2019, 2030, 2040 ............................................. 77

Table 11.1 – Tire Types and Subtypes .................................................................................................... 80




2 EXECUTIVE SUMMARY

Resin volumes are stated in thousands of metric tonnes (kMT), tire unit volumes are stated in millions of

units (MM). Market prices are stated in United States Dollars per metric tonne ($/MT) and market values

are stated in millions of United States Dollars ($MM).

2.1 SCOPE Market Segment: Tire segment focusing on resins used to enhance the performance of tread compounds,

specifically traction, handling, rolling resistance and wear for the tire types specified in Products below.

Tire Tread Performance Resin: Resin used to enhance the end performance of a tread compound. This

excludes tack resins. Examples and categorisation are provided in the Table 2.1 below.

Table 2.1 - Tire Tread Performance Resin Categorisation & Examples

Resin Type Resin Derivation Examples

AMS Alpha Methyl Styrene Types Sylvatraxx (Kraton), Impera (Eastman)

C5 Aliphatic Hydrocarbons Escorez (ExxonMobil)

C9 Aromatic Hydrocarbons Novares C (Rütgers)

H-DCPD Hydrogenated DCPD Oppera (ExxonMobil)

Terpene Terpene Derivatives Sylvares (Kraton), Dercolyte (DRT)

Competitive Materials

Various competitive materials Liquid polymers, silane modified polymers, proprietary chemicals

Products: Car, SUV, Motorcycle and Scooter tires and associated subtypes.

Geographies: This report covers the global market. The global geographies are split into 10 regions: Africa,

China, CIS, Europe, India, Middle East, North America, North Asia, South America and South Asia. Each

region is subdivided into the appropriate countries and in some instances states/provinces.

Time Frame: Covering the years 2011 to 2040 for market volumes. Market pricing for APAC, EMEA and

North America for the years 2017, 2018 and 2019.

2.2 OBJECTIVES The key report objectives are as follows:

Determine the tire tread performance resin manufacturing landscape

Understand the tire segment, sub segments and product requirements

Focus on market drivers for tire tread performance resins

Determine global, regional and segmental splits for tire tread performance resins

Determine global and regional market values for tire tread performance resins

Provide an outlook for tire tread performance resin manufacturers




2.3 MARKET DRIVERS Increased ******** is * key ****** for *** adoption ** tread *********** resin *TPR* because

********* tire ****** should **** to ********* TPR ******. Figure *.* presents ********* tire

********** growth *** PC **** SUV **** types ***** by **** and ******. It ** clear **** tire

********** will ******** substantially* with **** year ***** ranging **** *.* to *.*% globally. APAC

** forecast ** have *********** production ****** to ***** increasing ******** parcs ** well **

export *******. It ****** be ********** that ********** regional *********** and ******* mixes

**** have ** influence ** TPR ******, this ** explored *****.

Figure 2.1 - PC + SUV Regional Tire Production Growth 2011 to 2040

There ** a ***** trend ** high ***** added *HVA* goods. Figure *.* presents **** production

********* split ** main **** type *** subtypes. Two *** points **** this **** are* *) *** tires ***

increasing ** a **** faster **** versus **: *) *************** within *** and ** is ********** to ***

types. Both ** these ******* drive ********* TPR ***.

Figure 2.2 - PC and SUV Tire Production Growth by Subtype 2011 to 2040

There *** strong ********** product ****** by ******. For *******, European ********** has

******* from * and * rated ***** to ****** speed *******, with * strong ******** on ****** diameter

*****. Product *************** has **** increased **** all*weather *****, Eco ***** and ******

speed ***** winter ***** increasing ** number.




Market *********** of **** products *** also ***** to ** a *********** factor. Original *********

(**) tires have * significantly ****** proportion ** TPR ******* versus *********** (**) tires. In

******** to ****, there **** significant *********** in *** use ******* tire ********* of *********

tier ******.

Geographical ********** are **** a *** factor* these ****** to ********* tire *********** drivers

******* regions. Regions ***** wet **** is * key ********* (*.g. Europe* have ********* underlying

***** technologies ****** regions ***** this ** not **** a **** priority.

External ******* include **** labelling* legislation *** automotive **********. Regions ***** tire

********* is ********* have ****** TPR ************ due ** property ******* requirements.

Legislative ******** such ** low *** oil ************ in ****** have ****** increased *** of **** to

******** property *******. Increased *** of *** PAH **** in **** is * strong ****** for *** adoption

** TPRs* even **** lower ********** tire *********.




2.4 MARKET VOLUMES Total ****** volume *** splits ** TPR **** are ********* in ****** *.*. *** ***** have *** largest

******, however ***** share ** forecast ** drop **** **% ** **** ** **% ** ****. Conversely* ****

*** ******* *** types *** forecast ** increase ***** share ***** C* and ** types **** a **********

stable ***** (**** differs regionally *******).

Figure 2.3 - Global TPR Market Volume by Type 2011 to 2040

Total ***** volume *** **** ** **** ** presented ** Table *.*. The **** market ****** was ****** at

*** kMT* following *****-** impact ** ****, ****** is ******** to ******** substantially *** ****/*

at a **** of *.*%. This ** followed ** reducing* but ******* CAGRs ** following **** year *******.

Table 2.2 - Global TPR Market Volume 2011 to 2040

The ****** volume *** competitive ********* was ********* and ** presented ** Table *.*. This

********** is ******* to ***** uncertainty *** does *** appear ** be * part*for*part *********** of

***. Analysis ** the ****** impact *** made ** eliminating ********* TPR ******* for ** and ** BEV

*****. This ** presented ** Table *.*.

Table 2.3 - Competitive Material Estimate

kMT Year

2017 2020 2025 2030 2035 2040

Volume *.* *.* **.* **.* **.* ***.*

Table 2.4 - Estimated Impact of Competitive Materials

KMT Year CAGR

2020 2025 2030 2035 2040 20/25 25/30 30/35 35/40

Unadjusted *** *** *** *** *** *.*% *.*% *.*% *.*%

Adjusted *** *** *** *** *** *.*% *.*% *.*% *.*%

Important: See underlying assumptions in Section 8.5.

Change

2011 2015 2019 2020 2025 2030 2035 2040 19/20 15/20 20/25 25/30 30/35 35/40

Global **.* ***.* ***.* ***.* ***.* ***.* ***.* ***.* -**% *.*% *.*% *.*% *.*% *.*%

kMT Year CAGR




2.5 MARKET VALUES Total market values were estimated from averaged delivered prices which are presented in Table 2.5.

Table 2.5 - Average 2019 Delivered Regional Pricing, $/MT

TPR Type APAC EMEA USMCA

AMS **** **** ****

C5 **** **** ****

C9 **** **** ****

HDCPD **** **** ****

Terpene **** **** ****

Regional ******* may ** impacted ** volume ***********. Prices ******* modified ****** with

************** performance* therefore *** true ******** average **** be *****.

Global ****** values *** all *** types *** presented ** Table *.*. The **** market ***** was

********* at **** MM* this ** predicted ** rise ** $*** MM by **** (** 2019 prices*.

Table 2.6 - Global Market Value for All TPR Types 2019 to 2040

MM$ CAGR

2019 2030 2040 19/30 30/40

Global *** *** *** *.*% *.*%

Regional ****** values *** presented ** Figure *.*. This ***** that **** has *** largest *****, followed

** EMEA **** NAFTA *** LATAM. APAC ** seen ** have * growing *****.

Figure 2.4 - Regional Market Values 2017 to 2040




2.6 INDUSTRY OUTLOOK The ***** term ****** prospects *** TPR ****** volumes *** good* with * ****/** CAGR of *.*%.

Longer **** growth ***** reduce* but *** still ***** tire ******** unit ****** rates. This ** a

********** of ******** tire ******* mix ** HVA ***** with ********* types *** differentiation **

well ** larger ******* sizes. Longer **** growth ***** may ** reduced *** to ****** of ***********

materials ***/or ******** compounding **********, this ** driven ** vehicle *************** and

********** demands ** RR *** wear **********.

Volume ****** by ****** is ********* upon ******* and ****** tire ******* mix ** well ** legislative

******** such ** tire ********* and *** elimination ** process ****. APAC ***** potential ***

additional *** volumes *** to *** elimination ** well ** changing **** product ***. This ***** itself **

development *** tire ******* competency *tier *****) with ******** products *** lower **** level

*************.

Resin ************* typically **** highly ********** manufacturing ********* and ******* ranges

***** span * variety ** industrial ********. TPR ******** represent * small* but ***** added ***-

segment *** these *************. Established ******* in **** market **** been **** to ********

tire ******** knowledge *** a ***** pool ** technical ********* to **** market *********.

Competition ** this **** is ******** to ******** with ******** from **** and ***** in **********,

this **** almost ********* lead ** downward ******* pressures ** the ****** (*+ years) ****.




3 INTRODUCTION

This section provides the framework for this market research report. Definitions and scope provide critical

components necessary for a clear understanding of the report and conclusions. The objectives provide

the building blocks for the market report. Information sources allow the user to understand the level of

detail and reliability of the data.

3.1 DEFINITIONS, ABBREVIATIONS AND NOMENCLATURE Definitions, abbreviations and nomenclature are provided in Table 3.1.

Table 3.1 - Definitions, Abbreviations and Nomenclature (A to L)

Item Definition/Description

3PMSF The Three Peak Mountain Snowflake label found on winter tires and all weather tires.

Africa The African region – all countries on the African continent.

AFO Alternative fuel vehicle (not electric).

AMS Alpha Methyl Styrene type tread performance resin.

APAC Asia Pacific Region. (All countries east of Pakistan).

AS All Season tire type. This covers tires with M+S tire labelling.

AW All Weather tire type. This covers tires designed for all weathers which includes snow performance. These tires have the 3PMSF label indicating measurable and standardised snow and low temperature performance.

BEV Battery electric vehicle (100% electric drive).

CARB California Air Resource Board Regulation.

CIS CIS Countries plus countries outside of the Europe and EFTA. (Albania, Armenia, Azerbaijan, Belarus, Bosnia, Georgia, Kazakhstan, Kyrgyzstan, Moldova, Montenegro, Russia, Serbia, Tajikistan, Ukraine, Uzbekistan)

CMB Combustion engine driven vehicles.

Eco Eco tires represent tires manufactured in energy and resource efficient factories. These tires typically incorporate a proportion of sustainable materials and also provide environmental credentials through low rolling resistance. In the case of truck tires there is also significant importance placed on retreading and case life.

EFTA European Free Trade Association.

EPA USA Environmental Protection Agency.

Europe Countries of the European union plus EFTA.

EMEA Europe, Middle East and Africa (Including CIS countries).

GTRCDB© RCCL’s Global Tire & Rubber Chemicals Database.

HC Hydrocarbon type tread performance resin.

HEV Hybrid electric vehicle.

HP High Performance tire. These are tires with speed ratings of H and V.

HVA High Value Goods.

India Mainland India.

LATAM Latin America (South America, Central America) Excluding Mexico.




Table 3.2 - Definitions, Abbreviations and Nomenclature (M to Z)

Item Definition/Description

LFY Last full completed year. For market reports this is the last full year which can be benchmarked against RCCL’s range of confidential market volume information.

LRR Low rolling resistance

LT Light Truck tire. Tires for commercial vehicles <3.5MT.

Middle East Countries around the Persian Gulf. (Afghanistan, Bahrain, Iran, Iraq, Israel, Jordon, Kuwait, Lebanon, Oman, Pakistan, Palestine, Qatar, Saudi Arabia, Sudan, Syria, Turkey, Turkmenistan, United Arab Emirates, Yemen)

MT Metric Tonne.

M + S Mud and snow label. This label is not a rigorous performance standard and only applies within a manufacturer and range of tires. It is typically indicative of a tread design allowing for better handling in adverse conditions, it does not necessarily indicate low temperature performance.

MW Molecular Weight.

MM$ Millions of United States dollars.

NAFTA See USMCA.

N. Asia Countries around mainland Asia. (Bangladesh, Bhutan, Cambodia, Japan, Laos, Mongolia, Myanmar, Nepal, North Korea, South Korea, Taiwan, Thailand, Vietnam)

NR Natural Rubber.

OE Original equipment (new vehicle production).

pa Per annum.

PC Passenger car.

PHEV Plug-in hybrid electric vehicle.

Precedence RCCL’s tire allocation method. AW > WT > UHP > HP > ECO > Others.

RCCL Rubber Chemical Consultants Ltd.

RP Replacement market (components serving the used car market)

S. America Countries of central and South America.

S. Asia Countries separate from mainland Asia. (Australia, Brunei, East Timor, Fiji Islands, Indonesia, Malaysia, New Zealand, Philippines, Samoa Islands, Singapore, Solomon Islands, Sri Lanka, Tonga, Vanuatu)

SUV Sports utility vehicle or similar type.

TD Tangent delta. The ratio of dynamic loss modulus to dynamic elastic modulus.

TDAE Treated Distillate Aromatic Extract (Process Oil)

TPR Tread Performance Resin

Touring Touring tires are typically designed with comfort in mind. These tires cross a range of performances from budget (typically AS) through to UHP.

TR Truck Radial. Tires for vehicles >3.5MT.

UHP Ultra-High Performance tire. These are tires with speed ratings > V.

USMCA United States, Mexico and Canada (formerly NAFTA)

WT Winter tires. Winter tires are tires with the 3PMSF designation (Europe and North America) and also designated winter tires in North Asia (Japan and South Korea).

YoY Year-on-year.




3.2 SCOPE The following items are included in the scope:

Market Segment: Tire segment focusing on resins used to enhance the performance of tread compounds,

specifically traction, handling and rolling resistance for the tire types specified in Products below.

Tire Tread Performance Resins: Resin used to enhance the end performance of a tread compound. This

excludes tack resins. Examples and categorisation are provided in the Table 3.3 below.

Table 3.3 - Tire Tread Performance Resin Categorisation & Examples

Resin Type Resin Derivation Examples

AMS Alpha Methyl Styrene Types Sylvatraxx (Kraton), Impera (Eastman)

C5 Aliphatic Hydrocarbons Escorez (ExxonMobil)

C9 Aromatic Hydrocarbons Novares C (Rütgers)

H-DCPD Hydrogenated DCPD Oppera (ExxonMobil)

Terpene Terpene Derivatives Sylvares (Kraton), Dercolyte (DRT)

Competitive Materials

Various competitive materials Liquid polymers, silane modified polymers, proprietary chemicals

Products: Car, SUV, Motorcycle and Scooter tires and associated subtypes.

Geographies: This report covers the global market. The global geographies are split into 10 regions: Africa,

China, CIS, Europe, India, Middle East, North America, North Asia, South America and South Asia. Each

region is subdivided into the appropriate countries and in some instances states/provinces.

Time Frame: Covering the years 2011 to 2040 for market volumes. Market pricing for APAC, EMEA and

North America for the years 2017, 2018 and 2019.

3.3 OBJECTIVES The key report objectives were:

Determine the tire tread performance resin manufacturing landscape

Understand the tire segment, sub segments and product requirements

Focus on market drivers for tire tread performance resins

Determine global, regional and segmental splits for tire tread performance resins

Determine global and regional market values for tire tread performance resins

Provide an outlook for tire tread performance resin manufacturers




3.4 INFORMATION SOURCES Primary Sources

Tire & rubber chemical company confidential contacts covering a broad range of disciplines (e.g. technical,

commercial, marketing, production).

Knowledge gained via industry participation – no confidential information is presented.

Consultation for a range of clients on market and technical issues, enables extensive industry interaction

and ensures up to date knowledge. Active consultations include carbon black companies, tire companies,

rubber chemical companies, petrochemical companies, investment institutions and technology start-ups.

While confidential information is not used directly in reports, information is used to benchmark and fine

tune the reporting system providing realistic volume estimates via real life volume and technology

benchmarking.

Secondary Sources

Company annual reports & news feeds.

Industry journals.

Industry association journals and websites.

Industry conferences and papers.

Company web sites.

Government websites.

Patent reviews.

Global Tire & Rubber Chemicals Database (GTRCDB©)

The GTRCDB© is a proprietary database and reporting system designed specifically to gather and process

market information relating to companies active in material compounding. This database is constantly fed

information relating to tire, rubber and plastics compounding activities. Bespoke reporting tools allow

flexible reporting of past, present and future market requirements for individual compounding ingredients.

This is complimented by an extensive repository of chemical manufacturer information.

3.5 ASSUMPTIONS RCCL tries wherever possible to rely on fact based analysis. Much of the underlying analysis via the

GTRCDB© uses factual information gathered over many years from reliable sources. In order to provide a

full market picture of a complex segment it is always necessary to make assumptions. Wherever possible

RCCL will make these clear by making a comment in bold red. This type of annotation will be present in

the methodology section (Section 4) as well as within the market volume (Section 9) and values (Section

10) sections.

RCCL’s centrally controlled market analysis system allows alternative scenarios to be run. Clients wishing

to adjust any of the stated assumptions can arrange for further analysis at an additional agreed fee.




4 METHODOLOGY

This section explains the principles behind the generation of rubber chemical market volumes. Section

4.1 introduces a high level view of the ‘consumer-up’ approach. Section 4.2 discusses the framework for

the ‘consumer-up’ approach with Sections 4.3 detailing segment specifics for Tires.

4.1 GENERAL REPORTING PRINCIPLES A key concept of the methodology used is that of consumer driven demand using ‘Consumer Up’ analysis.

A high level view of the approach is presented in Figure 4.1. This shows that in order to evaluate the

market an understanding of product mix, product technology and production capacity is required. Further

to this, it is also necessary to adjust production capacity for market demand. All of these aforementioned

factors are bound by time and geography. Time in this case represents shifting product mixes, market

demands and associated production capacities, whereas geography represents additional regional

constraints/opportunities related to legislation and megatrends.

Figure 4.1- 'Consumer-Up' Market Analysis

4.2 CONSUMER-UP ANALYSIS RCCL’s ‘Consumer up’ methodology is based upon analysis of individual rubber chemical consumers at the

plant level. Each plant is allocated to a region, country and, as appropriate, state. Analysis is then done by

iterating through all plants for each of the required years. This plant level analysis is coupled with market

driven product and technology changes which allows a significantly more granular reporting approach

versus other market volume assessment methods.

This is explained in more detail in the following sections.




4.2.1 Key Parameters

RCCL has determined all the key parameters (these parameters can also be considered as variables)

associated with a robust and meaningful analysis of the rubber chemical market. The reporting system is

built to reflect ‘real-life’ usage based upon individual production plant output. This output can be broken

down into product constructions with associated components and compound formulations.

4.2.2 Consumer Plant Parameters

Parameters related to consumer plants are highlighted in Figure 4.2.

Figure 4.2- Consumer Plant Parameters

The following information is regularly updated for each consumer plant from a range of different industry

sources:

Yearly production capacity at the plant level.

Yearly product splits at the plant level.

Intelligence information relating to future production and product developments.

Changes in ownership or transfer of assets.

4.2.3 Product Technology Parameters

Parameters related to products are highlighted in Figure 4.3. Product technology parameters are

dependent upon time as well as region. Time dependency is evident especially in shifting sizes and

underlying compound formulations (chemicals). Regional dependency is evident in both shifting sizes as

well as compositions, with increased sensitivity to chemical composition on a regional basis due to a

number of differing drivers.

The following product information is regularly updated and applied to the appropriate consumers based

on a range of industry sources:

Yearly product technology changes (construction based).

Yearly product compound changes (material based).




Introduction of differentiated product sub categories.

Regional product shifts (e.g. tire sizes in each sub category).

Figure 4.3 - Product Technology Parameters

4.2.4 Market Parameters

Top level parameters relating to market demands are presented in Figure 4.4. These market parameters

are used to create a range of possibilities for future market volume outlooks via the use of incremental

changes to product split and technologies. When potentially disruptive drivers are considered (e.g.

potential legislation changes) the analysis can vary demands using product predicted splits.

The following market information is regularly updated and applied to generate the appropriate utilisation

rates based on maximum production capacities:

Past, present and future product unit production.

Economic indicators & drivers, industry specific and IMF based regional and country forecasts.

Tire company market assessments.

Industry market assessments from a range of different sources.

Upcoming regional legislative drivers.

Regional influences on specific sub segments.

Individual consumer responses to market changes and requirements.




Figure 4.4- Market Utilisation Parameters

4.2.4.1 Historic Values

The RCCL reporting system uses market models to adjust the manufacturing capacities to actual market

volumes. These are explained in Section 4.3. Historic values include values from the start year (2011) to

the last completed full year (LFY). These values utilise the market model plus a manual adjustment to bring

regional figures in line with those found from research.

Specific tire sub-segment markets are better defined than others. For tire industry data, historic figures

are adjusted to give overall regional balances for truck, light truck, SUV and PC tires. This is done by

adjusting regions with well-defined tire production and/or market data first and then applying necessary

adjustments to the remaining regions. Currently this means that North America, Europe, North Asia and

India are adjusted first and the remaining regions are adjusted to give a global figure in agreement with

research.

Market demand for rubber goods is not well documented, this means that the market model is applied

from the start year (2011) with manual adjustments being made for specific sub-segment changes.

Examples of specific changes relate to the mining and energy industries where performance may not track

GDP values.

4.2.4.2 Future Projections

Reporting years after the LFY can be projected in various ways, as shown in Table 4.1. The two most

common projections (PI and PIII) are highlighted in bold.

Projection I gives an upper bound to market volumes based on the theoretical maximum production

capacities.




Projection III gives the most probable market volume based on the LFY capacity adjusted by forward

market models as well as changing actual product splits. Actual splits are either reported plant product

splits or those estimated by RCCL.

Table 4.1- Future Year Projections

Type Description

I Demand based on total production capacity and actual splits for all years.

II Actual demand to LFY. LFY projected by market model utilisation.

III Actual demand to LFY. LFY projected by market model utilisation and YoY actual product splits.

IV Actual demand to LFY. LFY projected by market model utilisation and YoY predicted product splits.

V Actual demand to LFY. LFY capacity and utilisation fixed using actual product splits.

VI Actual demand to LFY. LFY capacity and utilisation fixed suing predicted product splits.

4.3 MARKET VOLUMES FOR TIRE CHEMICALS Section 4.2 discussed the general principles for ‘Consumer-Up’ analysis. This section discusses Tire

Segment specific details, adding additional levels of discrimination, in order to achieve results tailored to

the Tire Segment.

4.3.1 Consumer-Up Analysis

Cumulative experience gained from numerous global tire chemical research projects has led to the tire

subtype splits which can be viewed in the Appendices – Section 13.1. These tire subtypes are allocated

year-on-year to the individual tire manufacturing plants. An additional level of product discrimination

required is the differentiation between OE tires and RP tires1. This differentiation is required because OE

tires are the technology drivers in the market place, with newer technologies evolving from OE tires and

then cascading down into the RP market.

In view of the above considerations the GTRCDB© model for tires is extended from the general model

according to the scheme outlined in Figure 4.5. This shows separation of product types by tire company

tier level as well as product end use. The primary function of this scheme is to enable different component

formulations for the different end uses e.g. OE versus RP and tire company tier levels.

The extended scheme works by allocating tire subtypes to each manufacturer plant YoY as detailed, these

are the tire subtype splits by year (Syr). These subtypes utilise the Tier II/III constructions and formulations.

If the manufacturing plant produces OE tires then the appropriate allocation is split out from Syr with the

residual allocated to RP, both allocations using Tier I/II constructions and formulations designated as

application types (Ayr).

1 NOTE: the above scheme is currently used for PC, SUV, LT & TR tires only.




Figure 4.5 - Extended Model for Tire Segment

Tire company tier level is as follows:

o Tier I

Companies with global reach and technology leadership and a broad range of tire

types and/or sub types in the OE category

o Tier II

Companies with brand recognition but more limited OE offerings typically

technology followers

o Tier III

Companies with mainly replacement and budget tire offerings

RCCL tracks the following Tier I companies using brand analysis and other techniques:

Bridgestone, Michelin, Goodyear, Continental, Pirelli, Hankook, Kumho, Nexen, Yokohama, Toyo,

Sumitomo.




4.3.2 Tire Parameters

Tire parameters are derived from individual tire subtypes and application types. These are calculated year-

on-year by combining tire sizes, constructions, components and formulations in order to derive

appropriate parameters used in the plant level calculations.

The following parameters (Pyr) can be derived for tires:

Table 4.2 - Tire Parameters

Rubber Chemical or Chemical Group

Material Type Component Type

Mass/unit production Compound Tread

Mass/MT product Textile Sidewall

Mass/MT compound Steel …

Mass/MM$ sales revenue

High Level Example - Determining a specific rubber chemical mass by tire unit production for a given tire

sub type:

The tire sub type is programmatically constructed using a defined construction which consists of

individual components, each of which has an underlying formulation. Regional sizes and

formulations ensure appropriate dimensions and technologies which are varied YoY. The final

result is the unit mass (MT) of rubber chemical per unit tire production for each year and region

for the designated tire sub type

4.3.3 Tire Utilisations

The GTRCDB© uses market utilisations to adjust tire plant manufacturing capacity to match market

demand. The adjustments are made either as forward projected utilisations as described in Section 4.3.3.1

or as historic utilisations as described in Section 4.3.3.2. Utilisations are calculated for each tire sub type

in a tire market group. A tire market group is made up of one or more tire sub types which are grouped

together based upon market drivers and the need to differentiate market performance. Utilisation figures

are derived for each of the 10 different regions in the GTRCDB©.

4.3.3.1 Projected Utilisations

Projected utilisations for years after the LFY use a market model determined by tire type (e.g. PC, SUV, LT,

TR etc.), subtypes and segment (OE or RP). Tire types PC, SUV, LT and TR have market models for OE and

RP, other types (e.g. Agri, Aero, OTR etc.) follow a GDP based market model adjusted by short term

outlooks for the type segment.

PC tire types have OE and RP models covering standard (S, T speed rated tires), high performance (speed

rated H and above), and winter tires. This allows the necessary market performance discrimination. An

example follows for PC high performance tires:




OE: Growth is determined by regional YoY PC and SUV automotive production according to Equation 1.

The utilisation for the current year is determined according to Equation 2 which combines the previous

utilisation with the utilisation from the current year.

Equation 1 - OE Growth

OE = ((Oc

Op) − 1)

Equation 2 – OE Utilisation Current Year

Uc = Up ∗ (1 + 𝑂𝐸)

RP: Growth is determined by changes in the regional PC and SUV parc, plus a contribution from regional

GDP if the economic outlook deteriorates. This is determined by Equations 3 and 4. RCCL monitors

regional outlooks for the RP market models and applies proprietary adjustments based on changing

production outlook, this accounts for production for the domestic and international trade markets. RCCL

utilises its proprietary automotive top-down model to verify longer term market demand, this ensures a

global balance after adjusting for short-term disruptions or changes.

Equation 3 – RP Growth

𝑅𝑃 = ((Rc

Rp) − 1) + Gadj)

Equation 4 - GDP Adjuster

If Gc < Gp Then Gadj = −(Gp − Gc)

100 Else Gadj = 0

Definition of terms:

Oc Current year’s regional automotive production Gc Regional GDP for current year

Op Previous year’s region automotive production Gp Regional GDP for previous year

Rc Current year’s regional auto parc Gadj GDP adjuster

Rw Replacement market weighting Uc Utilisation rate for the current year

Up Utilisation rate for the previous year

NOTE: The GTRCDB© uses additional proprietary calculations to adjust utilisation rates in order to

remove organic manufacturing growth (which is not market growth). This is not detailed here, however

it is an important step in the process of obtaining realistic market growth volumes. Additional growth

in tire types and subtypes is derived from changes in manufacturing plant product splits. These splits

are tracked on a YoY basis including proposed technology changes and product rationalisations.




4.3.3.2 Historic Utilisations

Historic utilisations are those covering the years 2011 to the LFY. Utilisations are calculated as per Section

4.3.3.1 with the addition of a manual adjustment (Equation 5) which is used to bring results in line with

actual regional and global totals. When years are completed, regional and global figures are compared to

manufacturing information to ensure sensible regional figures and an overall global balance for

production. This is currently done for TR, PC, SUV and LT.

Equation 5 - Historic Utilisation

𝑈ℎ𝑠𝑡 = 𝑈𝑐 ∗ (1 + 𝑀/100)

4.3.4 Reported Values

Reported market values are derived according to the stated projections (definitions in Section 4.2.2).

The two most frequently used projections are provided by Equations 6 & 7.

Equation 6 - Projection I Total Available Volumes

𝑃𝐼 = ∑ 𝐶𝑆𝐴𝑃

𝑦𝑓,𝑝=𝑛

𝑦𝑠,𝑝=1

Equation 7 - Projection III Best Estimate Actual Market Volumes

𝑃𝐼𝐼𝐼 = ∑ 𝐶𝑆𝐴𝑃𝑈

𝑦𝑓,𝑝=𝑛

𝑦𝑠,𝑝=1

Definition of terms:

ys Start year S Plant percentage tire subtype split

yf Finish year A Plant percentage application type split

p Production plant P Parameter value

C Plant production capacity U Utilisation rate

4.4 MARKET VALUES FOR THE TIRE SEGMENT The global market value is obtained from the regional values. The determination of regional values is

explained in the following section.

4.4.1 Regional Valuations

Regional market value is determined from weighted average delivered prices. The global value is

determined from the weighted regional market values.

Weighted delivered prices are determined for APAC, EMEA, NAFTA and SAM. This is done by generating

an average weighted price based on regional material usage from underlying grade types. RCCL’s regions

are then assigned based on the four top level regions. For examples EMEA weighted prices are used for

Africa, Europe and Middle East.

The weighted average delivered rubber chemical price Cwt is determined according to Equation 8.




Equation 8 – Rubber Chemical Weighted Average Delivered Price

𝐶𝑤𝑡 =∑ 𝐺𝑛𝑊𝑛

𝑛𝑛=1

∑ 𝑊𝑛𝑛𝑛=1

Where: G = Individual grade delivered price, W = grade weighting, n = number of grade types

4.5 DATA VALIDATION This section addresses the issue of data validation.

4.5.1.1 Market Volumes

Market volume data is determined following the principles set out earlier in this section. Underlying

compound formulations are adjusted by region, manufacturer tier, tire type, sub type and component

(e.g. Europe – OE – PC – All Season – Tread). Formulations have been developed from 2009 onwards from

a wide range of sources and have been validated for different groups of rubber chemicals (e.g. carbon

black, precipitated silica, process oils, resins etc.). Resins were incorporated into formulations starting

with OE and then moving to tier I/II RP and finally RP tier III. This process was iterative with reports run

after each modification followed by crosschecks versus real life usage data from confidential sources (by

tire manufacturing company).

Validation of other rubber chemicals along with real life validation of resin use versus actual tire company

usage provides a solid foundation.

4.5.1.2 Market Values

Delivered prices were obtained from reliable confidential sources.

It should be noted that regional prices may vary due to material availability, contract volumes and the

range of individual products within a product group. All prices were determined in US dollars.




5 TIRE TREAD PERFORMANCE RESIN MANUFACTURING LANDSCAPE

This section focuses on manufacturers of tire tread performance resins. Section 5.1 provides an industry

overview giving some context with respect to the broader resin manufacturing segment and markets and

that of tire tread performance resins. Section 5.2 discusses raw materials used for tire tread performance

resins. Section 5.3 looks at the different types of tire tread performance resins. Section 5.4 takes a closer

look at the key manufacturers and their product offerings and provides some high level financial analysis.

5.1 INDUSTRY OVERVIEW Many of the key manufacturers for tire resins are also active across a broad range of industry segments

and chemical groups. Eastman Chemical Company, ExxonMobil, Kolon Industries and Zeon Corporation

are examples of these types of manufacturer for which tire resins are a small sub-set of one of their

individual market segments. The above mentioned companies also serve the tire industry across a range

of additional product offerings, this allows spread of resources and shared experience between different

product functions with common customers.

Manufacturers specialising in resin products and derivatives include companies such as DRT and Yasuhara

Chemical, in this instance the tire segment forms a small sub-set of the total product offerings.

Figure 5.1 - Simplified Schematic for Raw Material to Resin Type

Figure *.* shows * simplified ****** for *** materials ******* to ***** types *** sub *****. This




********** the ********** of *** resin ******** and *** huge ***** of ******* offerings ***

potential ******* variants. Each ** the ***** groups *** sub ***** has * natural *** with ********

target ******** due ** chemistries *** performances* the ********* to ****** materials **** leads

** cross*overs ** target *******. The ***** categorisation ** this ****** denotes *** primary

*********, however ** is ******** possible **** the **** resin ** modified ** other ****** to *** in

************* with ****** polymers *** applications.

5.2 RAW MATERIALS The key starting materials for the main resin types are oil, coal and organic materials. Oil based resins are

typically referred to as petroleum resins. Trees are the principle feedstock for organic based resins,

although there are numerous exceptions to this. Figure 5.1 shows a simplified schematic for the principle

raw materials and the route to synthesis for different resin types. It should be noted that each resin type

can be subject to many different types of modification and this can sometimes lead to confusion of

classification. The resin groups discussed in this report are produced from coal, oil and organic feedstocks.

Please refer to Section 5.3 which restates the resin group definitions from the scope in Section 3.

Distinction *** made ******* sustainable ******* and ***** consisting ** oil ** coal ***** derivatives*

this ***** to **** differentiation ** the **** resin ****** on *** grounds ** sustainability. The *******

driver *** individual *** use ** tire ***********, with ***** premiums *** products **** to

************* themselves ** final ******** enhancement *** also ******* in **********

performance. Sustainability ** becoming * more ********* factor ** material ****** for *** tier ****

manufacturers *see ******* *.*). This **** impact ******** choices ** the ******-long **** in *****

for ***** manufacturers ** meet ***** sustainable ******** targets. This **** complexity ** the

******* mix **** sustainable ********* modified **** fossil ***** chemicals ** provide * balance **

performance *** sustainability.

5.3 RESIN TYPES The ***** types ******* by **** report *** detailed ** the ***** (******* 3.* Table *.*). There ***

wide ******* claims *** resin *********** and *** within *** tire ********. This *** lead ** a

******** picture **** respect ** actual ********* use ** tire *************. The ********* sections

**** with **** resin ****, providing *** range ** use *** tread *********** and *** in ***** tire

**********. This ********** is ******** in ******* * ***** looks ** the *********** requirements

** treads ** specific **** types *** sub *****.

The ************** of ****** by **** is ********** for ********* purposes. It ****** be **********

that **** resins *** hybrids ** two ** more ********** types* the ***** ‘***** in this ******** is

********* defined ** the ***** component. For *******, a ******* resin *** be ******** with ******

and*or ***** aromatic **********, it ** referred ** as * terpene ***** if **** is *** major *********.

This *********** can ****** tenuous ** some *************.

Review ** tire ******** resin *** via ************ contacts* patent ********** research *** brand

******** indicates ** increasingly ******* landscape. Development ****** and **********

considerations *** presented ** Section *.*.




5.4 KEY MANUFACTURERS This section focuses on key TPR manufacturers. The patent literature research provides the names of some

additional manufacturers, these can be found in Section 7.6.

5.4.1 Financial Performance

Many ** the ************* listed *** active ****** a ***** range ** market ******* (** discussed in

******* *.*) covering a **** range ** products* both ***** and ***-resin *******. This ***** financial

******** of **** resin ******* operations ***********. Figure *.* shows ********* margin ** a

********** of ***** revenue *** selected ***** manufacturers *** reporting ******** including ***

activities. The **** ratio *** Eastman ** due ** the ***** of ********* included ** their **********

products *******. The ***** three ************** segments *** more ******** to ***** production

******** a **** range ** market *******. Trends ******** from ***** ratios ***:

********* ***** *** **** * ****** **** **** **** ** ****.

******* *** *** ***** ***** ************* **** ****** **% *** **** ** ****.

****** ******** ** **** **** ** **** ********* 2016 ** ****** ***** ***** ***********).

Figure 5.2 - EBIT/Sales Revenue for Selected TPR Manufacturers & Business Segments

Kraton ************* financial ********** allow ********** breakdown ** resin ******* product

********** volume. This ** presented ** Figure *.* showing ***** revenue* gross ****** and ****

divided ** total ***** volume *** Kraton’s ******** reporting ******* (******** Arizona Chemical*.

Average ******* price ** about *****/MT **** average **** of ************* $***/MT. There ***

been * substantial **** in ******* price ** the **** * ********.

Kraton ****** quarterly ***** for *** Tire *******. Using *** reported ****** changes *** an

********* **** ****** price* the **** to **** values *** market ***** and ***** volume ****

estimated. This ** provided ** Figure *.*. This ********* that ****** sell *** products ** prices ****

above *** average ******* reporting *****.




Figure 5.3 - Kraton Corporation's Chemical Segment Financials

Figure 5.4 - RCCL Estimates for Kraton TPR Sales & Volumes

RCCL estimates for selling price and volumes.

5.4.2 Arakawa

Arakawa ********** in ******** using *********** raw ********* and *** multiple *************

locations ** Japan. TPRs ****** to **** a ***** part ** their ******* offering.

Table 5.1 - Arakawa's TPR Products

***** **** **** ***********

***** *-** ************ ********* *****

******* ******* ******ic




5.4.3 Cheeshine Chemicals

Cheeshine ********* have *** manufacturing ******** in ******* Province* China. They ***********

a **** range ** rubber ******** products ********* silane ******** agents* multifunctional

************ agents* performance ******, fillers* process **** and ***. Cheeshine **** a *******

TPR ******** and *** technology *********.

Table 5.2 - Cheeshine Chemical's TPR Products

Trade Name Type Examples Target Properties

********* *** ******* ** ***]

********* ******* ** ******* *** ******** ******

******* ** ***]

5.4.4 Cray Valley (Total)

Total **** Valley ** a ****** manufacturer ** low ********* weight ********** additives. Cray ******

produce ***** hydrocarbon ****** at ***** plant ** Beaumont* Texas* USA *** also *******

functionalised ************* resins ** their ***** in ***** Junction* Colorado* USA. Cray ****** have

* broad ******* range *** customer ****, offering **** and ********* considered ******* to ****.

Table 5.3 - Cray Valley's TPR Products

Trade Name Type Description

***** ****** ******* ********* ***** ***************

*** ** *******

********* ****** ** **** *******

** ****** **** *******

5.4.5 DRT

DRT ********** in ***** and ******* products. After *** acquisition ** Pinova ** **** **** have

********** bases ** three ********* regions* Georgia* North *******: France* Europe *** Wuxi*

China. DRT **** a ***** range ** terpene *** modified ******* products *** appear ** have **

increasing ***** on *** Tire ******.

DRT ** building * new ******* phenolic ***** at *** existing ******** in ********, France. The *****

is *** for ********** end ** **** *** will ***** the ********* terpene ******** capacity ** **%.

They *** also ******** a *** hydrogenated ***** plant ** France* due *** completion ** ****.

Table 5.4 - DRT's TPR Products

Trade Name Type Examples

********* ******* ******** ****

********* ******* ******** *****

********** ******* ******** ****




5.4.6 Eastman

Eastman ******** Company **** a **** range ** chemical ******** including **************, resins*

sulphur *** stabilisers *** the **** industry. Eastman **** four ***** manufacturing ********** in ***

USA *Pennsylvania* Texas** Europe *Netherlands* and ***** (*******).

Eastman ***** annual ******) announced ********* for *** Impera **** performance ******. The

********** will ** at ***** Middelburg ***** in *** Netherlands *** at ***** Jefferson ***** in **,

USA. The ******** increases **** stated ** be ******* ** *** ** *******, this ******* to

************* * ***** based ** RCCL’s *********.

Eastman ****** to * wide ***** of **** companies ****** the *****. Their *********** based ***

product ***** is *********.

Table 5.5 - Eastman's TPR Products

Trade Name Type Examples Target Improvements

****** *** ***** **/**/WR

****** ** *****

****** ***** ***** ******WR

****** *********** *****

****** ********** *****

******** ***** ****

5.4.7 ENEOS

The ***** brand ***** from *** amalgamation ** Tonnen ******** and ** Nippon ***. Prior ** this

***** were ******* agreements **** ExxonMobil. It ** not ***** if *** resin ********* are *******

from ********** technology.

Table 5.6 - ENEOS' TPR Products

Trade Name Type Examples Target Improvements

*-*** ** ***** ****

*-*** (*******) *-****/C9 ***** **/** High *** *************

*-*** (*******) **/** ***** **/** High *** *************

********** ** *** ******* *******

********** *******

****/** **-*** *** *** * ****




5.4.8 ExxonMobil

ExxonMobil ******* elastomers *** resins *** the **** industry. ExxonMobil **** resin *************

locations ** the *** (*********), Europe (******) and Singapore. While **** are * small **** of *****

business **** have ** established ****** customer ****.

Table 5.7 - ExxonMobil's TPR Products


******* ** ****

****** **/** ******

****** *-****

5.4.9 Kolon Industries

Kolon ********** manufacture **** cord* adhesion ****** and *********** resins. Kolon

*********** resin ************* plants *** located ** Daesan* Ulsan *** Yeosu* South *****. TPRs

****** to ** a ***** part ** their *********.

Table 5.8 - Kolon Industries' TPR Products

Trade Name Type Example

******* ****** **

******* ****** ****, *-****, DCPD***

******** ** *** **/******** *-**

5.4.10 Kraton Corporation

Kraton *********** acquired ******* Chemical ** the *** of ****. Arizona ********** operations ***

form *** chemical ******* of ******** operations. Kraton *** tire ***** manufacturing ********* in

******, France *** Panama ****, USA.

Kraton ********* (*** 2018) *** intention ** increase ******** for ***** enhancement ********* at

*** Niorit ***** by **% with *** capacity ******** scheduled *** completion ** Q* ****. Based **

RCCL’s ********* this ********* an ******** of ************* * *****.

Kraton **** a ***** range ** products ************ targeting *** Tire *******. Kraton ********

announced *** second ********** polyterpene *******, Sylvatraxx* ****. This ** a **** based

******* (********* limonene due ** pricing ************) with * high ******** content. The *******

is ******** at **-AS ***** for **** and **.

Table 5.9 - Kraton's TPR Products


******** *** ****

******** ******* ******** ** ****

******** ******* ** ****

******** ******* ******** ** ****

********** *******+*** ******* ******* ********

**** ****




5.4.11 Rütgers Novares

Rutgers **** two ***** manufacturing ********** in ******, the **** plant ** located ** Duisberg*

Germany *** the ***** in ********, Netherlands. Rutgers **** a **** history ** supply ** the ****

industry* particularly ** Europe.

Rutgers ******** (** 2019) ******* production ** a *** ***** hydrogenated hydrocarbon ******** in

*******-Rauxel* Germany.

Table 5.10 - Rutger Novares' TPR Products


******* * ****** ** *****) ***

******* ** ****** *******+*** ** ** *

******* ** ****** ** ****)

5.4.12 Yasuhara Chemical

Yasuhara ******** are ******* on ******* chemistry *** have *** resin ************* plants **

Japan ******* in ***** and *****. Yasuhara’s *** offerings ****** to ** mainly *** customers ** APAC.

Table 5.11 - Yasuhara Chemical's TPR Products


** ***** ** ****** ******* *****

** ***** ** ****** *******/** ****

** ******** ****** ******* ****** ****

5.4.13 Zeon Corporation

Zeon *********** have *** resin ************* plants. The **** plant ** located ** Okayama* Japan

*** the ***** is ******* in ******, Thailand. TPRs ****** to ** a ***** part ** their ******** base.

Table 5.12 - Zeon Corporation's TPR Products

Trade Name Type Examples Description

******** *** ****** **/** ***** ** ***** **** **** **** ****** *,*-pentadiene **** ** ********

******** **** ******

**** **** **** *** ****/*** resistance

5.4.14 Other Manufacturers

There *** numerous ***** resin ************* claiming ** sell **** the **** market. Many ** these

*** supply ********** rather **** TPRs. Additional ************* which **** some ******** in ***

TPR ****** are* *********, ******** and *******.




****** *** becoming * significant ****** in *********** materials **** increasing ******** in *****

functionalised *** MW *********.

5.4.15 Key TPR Resin Manufacturer Trends

Two trends in suppliers are clear:

******** **** ****** *********

o ******* ** *** ******* *** ********* ******** ***** ********* **** ******

******* ************** ** ******* **** ***** ** *** ******. ***** *********

******* ******* *** **********.

**** ****** *****

o ********* **** * ***** ********** ** *** **** ****** **** **** ********** **

******* ** ********** *********** *** *****. ***** ********* ******* ******

******** Chemical** *** *** ********.

5.5 TIRE TREAD PERFORMANCE RESIN DEVELOPMENTS This section comments on developments from a supplier perspective. Market driven developments are

discussed in Section 7.

Some ** the ************ within *** resin ************* sector *** indirectly ****** opportunities

** the *** market. An ******* of **** is ************ resins ********* for ******** performance **

other ****** markets *e.g. adhesives*. The **** type **** is *****, however ************ versions **

other ***** types *** also *** increasingly ******. Generally* modifications ***** provide ********

with ** adjusted *********** envelope *** be ** interest ** tire ************* who *** looking ***

the **** approach ** tire *********** optimisation.

******* ******** ******* ****** appear ** be * growth ****. Patent ********** suggests **** these

******* types **** use ** formulations **** very **** precipitated ****** loadings **** reference **

******** ******* capability. It *** well ** that ***** types ******* both ******* response

************ as **** as *********** related ****** such ** filler ************ and ******** tack.

Key points of interest to tire manufacturers include:

************ ********** *** and ***** *****)

********* *****

********* **********/*************

********* ******

**** **** *********** ******)

*********** *******

************** *********** at **** ********)

*** ***** ************** **** ** **** ********** **** ******* ************ *** ******* *****

*** ********* ********* **** ********* ********** ******** ************* **** ****** *** ***

*****. *** ********* ********** ******* **** ******* *************

*********** ** ********* **********/*********** property***********




o *********: *** ******** *********** ** * ********* ******** *** ** *******

************* **** *** ***** ********** ****** ** ***** *** ****

**********

o **********, *********, ***********, ******* ********* *************,

migration*

************ ************* *** and ***** ** *** ******* ******** *****)

o **/**

******** ***, ******, **** *********** **** *** ****** **********

o **

************ ** ******, **** *********** **** *** ****** **********

o **

************ ** ***, ****** *********** **** *** ****** **********

****

o ** ********* ** **** ********** improvement*

**********

o ** ********* ** ***-**** resistance

*****

o *********** *********** **** *** **** ******* *********

Leading *** producers *** increasing ***** focus ** specific **** type *** subtype ************ in

**** with **** market ************ and ***************. This ** leading ** increased ***** on

******** for **/AW ************ which **** balanced *********** characteristics.

Tire ******** manufacturers *** favourable ****** conditions ******* ****, *******, market

********** deteriorated ******* ****, ******** by *********** COVID*** disruption ******** in

****. While ************** TPR ******** have **** immunity ** general ****** fluctuation* pricing

********* were ******** by *** main *********. Kraton **** also *********** a *** material ******

for ***** terpene ***** which *** also ** an ********* of ******* pricing *********.

* **** compounders ******* viscoelastic ********** as **** performance **********. For ** there **

an ****** understandable *********** with ********* energy ****** at ******* tire *********

temperatures *** rotational *********, usually ******** by ******* delta *TD* at ****** **** at ****.

Grip *********** utilises ****-temperature *********** principles *WLF *********), measuring

********** at * low *********** as ** indication ** equivalent *********** at **** frequencies. WG

** usually ********** by ** around ***, with ** and ** being ********** at ***** temperatures ** to

***oC* and ** determined ** higher ************ (********* 30oC). Grip *********** is ****

dependent **** compound *********, therefore *** elastic ****** at ***** temperatures ** equally

*********. Other ********* considerations *** testing *** prediction *** strain ********* and ***

nature ** the **** surface ***** predicted. Required *********** is ********* a ********** between

********** of ********.




6 QUANTITATIVE TIRE MARKET DRIVERS

This section focuses on the tire market from a quantitative viewpoint. Tire types and their respective

subtypes are discussed in relation to regional tire market trends. The tire types and subtypes provided

give the best compromise for differentiation of material requirements versus the availability of reliable

production and market information.

Note: All commentary relates to tire types and subtypes included in the report scope (Section 3.3). Also

review Section 11 – Appendices for a comprehensive list of tire types and subtypes.

RCCL *** estimated ***** SUV ******* from ******** PC *** LT ****, this ** due ** variation **

vehicle *********** and ********* across *******.

6.1 TIRE TYPES In order to analyse TPRs it is necessary to break the market into discreet units with similar requirements.

The technical reasons for this are discussed in Section 7. This section defines tire types and subtypes and

looks at quantitative tire market trends and drivers for the trends in each tire type and subtype.

The ****** summary *** tire **** evolution ** presented ** Figure *.*. This ***** global *** regional

**** unit ********* for *** types *PC* SUV* MCSCTR* indicating ****** growth ********* COVID***

reduction ** ****. The ****** in *****, North **** and ***** is **** significant ** unit ****** giving

*** following ******* for **** to **** unit ****** (**):

China ****) >> ***** (***) > North **** (***)

Figure 6.1 - Tire Unit Evolution by Region All Tire Types 2011 to 2040

Tire unit growth by tire type is presented in Figure 6.2. This shows the following 2019/40 ranking (MM):

*** ****) > ****** ****) > ** ****)

The **** growth ** *** ***** is *********** as **** represents ***** of ****** average ****. Caution

****** be **** in *** interpretation ** this **** as ***** is ** allowance *** differences ** TPR

*********** requirements ******* tire ***** and **** importantly **** subtypes. This ** the ******

why **** breaks **** production **** tire ********.




Figure 6.2 - Tire Unit Evolution by Tire Type 2011 to 2040

Tire Allocation Precedence

RCCL’s ****** allocates ***** based ** the ********* priority*

** * ** * *** * ** * *** * ***** *** *****

Tire ******* offerings **** evolved ************* over *** last *** decades. One ** the *******

areas ** change *** been ********** between ********** (*.g. summer* winter* all ******) and

**** speed ******* (*.g. H* V* W* Y* Z*. Historically *** highest ***** ratings **** typically

********** with ****** performance *****, more ******** there **** been ********* of ******

speed ******* across * much ******* performance ******** including **, AS *** WT *****.

As ** example* A **** is ********* to *** WT ******** in ********** to *** underlying ***** rating*

therefore * W ***** WT **** is ********* as * WT **** not * UHP ****.

Manufacturing Location versus Market Requirements

RCCL’s ****** tracks *** benchmarks ******* tire **********. This ********* means ***** may ** a

*********** between * region’s ****** requirements *** material ***** relative ** the ****** mix.

This *** be ********* by ************* for ****** which ** done ****** to ******** centres **

competence *e.g. winter **** production* run **** or ****-seal ***.) or *** economic ******* such

** manufacture ** Thailand *** export ********.

6.1.1 PC and SUV

From * material *********** it ** convenient ** combine ** and *** tire ***** and ******** since ***

underlying *** requirements *** similar. RCCL’s ******** system ***** a *********** between *****

tire ***** to ******* for ************** and **** differences ***** impact **** material

***********. For *******, both ** and *** AS ***** will ******* similar ****, the **** difference

***** that *** tire ****** will ******* more ******** due ** their ****.

Figure *.* shows *** historic *** future ****** potential ** PC *** SUV **** types. The ***** growth

** SUV ** projected ** continue **** the ****** period* this ** a ******* of ****** OE ****** with *

corresponding ****** in ** offset **** that ** OE. There *** some **** subtle ******* behind *** main

**** types ** PC *** SUV* these *** explored ** the ********* sections *Sections *.*.1.* to *.*.1.*).




Figure 6.3 - PC and SUV Tire Unit Evolution 2011 to 2040

6.1.1.1 Standard Tires (S, T rated)

Tire ********** evolution *** these ***** is ********* in ***** *.*. Standard * and * speed *****

tires *** considered *** low *** of *** value ***** by *********** proficient **** manufacturers.

Growth ** these ***** is ****** in **** driven ** organic ****** growth. EMEA *** USMCA **** see

****** declines ** production ** these **** types. The ************ nature ** tires ** this ********

means **** are ******** on * cost ***** and *** not ******* for ****. One ********* is **/AS ***

types ******** for **-off ** off*road ***********. These ***** typically ******* reinforcing ******

for ******** cut*chip ***********.

Table 6.1 – PC and SUV Standard Tire Unit Evolution 2011 to 2040

Tire Type

Year Change CAGR

2011 2015 2019 2020 2025 2030 2035 2040 19/20 15/20 20/25 25/30 30/40

PC *** *** *** *** *** *** *** *** ***.8% **.7% *.*% *.*% *.*%

SUV *** *** *** *** *** *** *** *** ***.3% *.*% *.*% *.*% *.*%

Total *** *** *** *** *** *** **** **** ***.1% **.1% *.*% *.*% *.*%

6.1.1.2 High Performance Tires (H, V rated)

HP ** tire ********** growth ** presented ** Figure *.*. These ***** represent *********

differentiation **** standard ***** and *** more ********** targets *** TPRs. The **** indicates

*********** growth *** SUV ***** in **********.

Figure 6.4 – PC and SUV HP AS Tire Unit Evolution 2011 to 2040




HP ** tire ********** growth ** presented ** Figure *.*. These ***** represent *********

differentiation **** standard ***** and *** more ********** targets *** TPRs. The **** indicates

****** unit ******* versus ** AS ***** with ******* growth *********.

Figure 6.5 - PC and SUV HP SM Tire Unit Evolution 2011 to 2040

Note* The ****** potential *** HP ** types *** be *********** versus ** types. Market *********

sees * shift ** AS ***** which *** happen ****** than **** has *********.

6.1.1.3 Ultra-High Performance Tires (W+ rated)

UHP ** tire ****** is ********* in ****** *.*. These ***** have ********* differentiation **** HP

***** and ********* high ********* for ****. Unit ******* are ***** than ** counterparts* however

*** technical ******* is ******.

Figure 6.6 - PC and SUV UHP AS Tire Unit Evolution 2011 to 2040

UHP ** tire ****** is ********* in ****** *.*. These ***** have ********* differentiation **** HP

***** and ********* high ********* for ****.

Figure 6.7 - PC and SUV UHP SM Tire Unit Evolution 2011 to 2040




Note* The ****** potential *** UHP ** types *** be *********** versus ** types. Market *********

sees * shift ** AS ***** which *** happen ****** than **** has *********.

6.1.1.4 Specialist Variants: Winter and All Weather

WT *** AW **** production ********* is ******** in ****** *.*. This ***** good *** lower *****

versus ** and *** tires. There *** several ********* complications *** these *****. AW ***** were

******** for **** round *** in ******* with **** severe ******* and ********* will **** some **

tire *****. Some ******* mix ******** of ** and ** tires* RCCL’s ******* is **** a **** AW **** will

**** the ***** requirement. Some ** units *** therefore ****** to ****** in ***** AS **** subtypes.

Both ** and ** tires ********* good ************* for ****, and ** explained *****, this **** extends

** some **/UHP ** tires ******* AW ********.

Figure 6.8 - PC and SUV WT and AW Tire Unit Evolution 2011 to 2040

6.1.2 Motorcycle and Scooter Tires

MC *** SCTR **** production ********* is ********* in ****** *.*. There **** overlap **

manufacturer ************** for ***** types. From * TPR *********** the *********** in *** radial

** market ** the **** important ** this ** a ****** differentiated ******* with **** scope *** TPR

***********. Development ** MC*R ***** is ********* in ***** *.*.

Figure 6.9 - Motorcycle and Scooter Tire Unit Evolution 2011 to 2040

Table 6.2 - Motorcycle Radial Tire Unit Evolution 2011 to 2040

Tire Type

Year Change CAGR

2011 2015 2019 2020 2025 2030 2035 2040 19/20 15/20 20/25 25/30 30/40

MC-R **.* **.* **.* **.* **.* **.* **.* ***.* *.*% **.*% *.*% *.*% *.*%




6.2 CHANGING VEHICLE TECHNOLOGIES (DRIVETRAIN) The ********** industry ** currently ********** a ********** to *********** drive ******* (******

combustion). The ********* adoption ** electric ***** vehicles ** likely ** impact **** design ***

performance ************. From * tread ******** perspective ***** is * desire ** have *********

durability ** well ** lower ******* resistance ** accommodate ******** drive ***. TPRs *****

flexibility ** compound ****** approach *** are ****** to ****** a **** of *** total *****

performance ******** in *** short*medium ****. Longer **** indications *** that ***********

materials *** replace * portion ** TPRs.

RCCL *** used ******** and ******* based *****-term ******** to ********* electric *******

production ***********. These ******* are ******** aspirational *** may ********* an

************, however* recent ******** sentiment ******** a ****** desire ** implement ***

technology *******.

Figure *.** presents ** tire ****** by ********** type ** to ****. BEV ***** are * small **********

of *** OE *** up ***** **** ***** demand ** expected ** accelerate. By **** BEV ***** are *** to

******* for ************* **% ** total ******.

Figure 6.10 – PC and SUV OE Tire Demand by Vehicle Drivetrain 2011 to 2040, millions




Figure *.** presents ** tire ****** by ********** up ** ****. Demand **** behind ** as **

expected* with * **** *** market ***** of **%.

Figure 6.11 – PC and SUV RP Tire Demand by Vehicle Drivetrain 2011 to 2040, millions

Drive *************** places ********** requirements ** tires *** to ********** vehicle ****** and

************* torque ***********. Key ************* are ******** for **** durability *especially

****) and ******* resistance *for ******* range*.

These ******* have **** considered ** part ** the *********** materials **********. See *******

*.*.

A ****** term ************* for **** design *** performance ** autonomous *******. This ***

significant ********* impacts *** tire *********** where ******* is ******** electronically. Under

***** circumstances *** compounding ************ may ** quite *********. This ****** has ***

been ********** in *** time ****** analysed.




7 QUALITATIVE TIRE MARKET DRIVERS

This section deals with tire market drivers influencing adoption and use of TPRs.

7.1 HISTORICAL PERSPECTIVE Resins **** been **** in **** treads *** many *******. Early *** was ******** at ********* durability

*chip*chunk* of ***** and ***-road ***** using *********** resins* while ********* and ****

derivatives **** used *** improving **** performance ** HP ** tires. Resins ** all ***** types **** also

**** used *** tack ************ in *** tire ******** process. This ********** use *** typically **

very ****** loading ****** (********* 3-****) with the ********* of ********** only ***

performance ** processing ********.

Development ** silica ***** compounds ** Europe **** the *** ****** led to ********** performance

************* with **** being ******* to **** fine **** RR *** WG ** particular. European

*********** to ****** PAHs **** tire ******* oils* fully *********** in ****, increased *** use **

TPRs. This *** required ** balance ** and ********** which *** compromised ** the ****** to *******

process ****. Adoption ** tire ********* in ****** followed ** Japan *** South ***** led ** additional

***** on ** and ** again ********* the *** of ****.

The **** ten ***** has **** seen * dramatic ******** in **** subtypes ** tire ********* have *****

up *** value *****. This *** expanded *** market ** terms ** TPR ************, with **********

performance ************ and *********** required *** HP *** UHP ** and ** tires. This ** explored

** the **** section ******* at **** value ***** products.

7.2 EVOLUTION OF HIGH VALUE ADDED PRODUCTS The **** industry *** traditionally ******* a ******** approach ** developments *** changes ** a

****** critical *******. While *** underlying ****** considerations ****** a ***** foundation* the

**** few ******* have **** substantial ********* in ******* developments *** product *********.

In *** last *** years *** pace ** development ******** has ***********. One ** the ******* drivers

*** this *** been *** requirement *** the ******* brands* and **** technically **** tire

*************, to **** up *** value ***** in ***** to ****** market ***** and ****** margin. The

****** for **** has **** the **** influx ** low ****** Tier *** type ************ products *mainly

**** China* and ********** developments ** other **** manufacturers ******* to **** themselves

** the ***** recognition ******.

RCCL’s ******** found **** types *** in ********** tire ******** based ** high ***** added *****

to ** a ****** driver *** TPR *** both ** terms ** type ** resin *** quantity ** resin.

7.2.1 PC and SUV

These *** tire ***** can ** treated ********* from * tread ******** viewpoint. The ******** trend

*** these ***** is ** higher *********, lower ******** and ****** speed *******. This ***** has ****

significant **** the ***** ****** in the **** developed *******, especially ****** and ***** America.




The ********* regions ******** to *** market ********** along ***** lines* the **** dramatic

******* are *** occurring ** the ****** economies* in ********** China *** India.

The three key drivers from a TPR perspective are:

**** ***** **** *********

o **** *** ****, *** ********* ** **, ****** ** ******** ******* *** **** ** ** *** *****

***** ***** ** ******* ******** ** **** **** *** ***** ****.

o ** ******** ** **** ***** ** **** * ********** ***** **** ***** ***** ***** ***** **

****** ***** ***** *****, ********* ****** ****** ** ** *** **** ***** ***** ** *

***** ** ****** ********, ***** ****** ****** *** ****** ***** *******.

********* **** ********

o ** ***** ** ***** ************** ******** ***** ** *** * ***** ***** ** ****

******** ** *****, ************ ** ******* ******** ****** ******* *******.

o ******** **** ********** ******** ************ *** *********** *******.

o **** *** ***** *** ** *** *** **** ***** **** *** ****** *** ***** ** ******* *** ****.

*********** *****-*****

o ******** **** ***** *** ***** **** ********* **** *** ***** ****** ** *** ****. ***

*******, * ****** **** ***** ********* **** **** * *, * ** * ***** ******. ******

************ **** *** ** ******** *****-***** in ***** ******* *** **** *****,

****** ** ** *** ******** ** *** *** * ****** **** **** ** * ** * ****** *** *********

**** ******. ***** ********* *****-***** lead ** ************* *** ******** **** **

******** ** **** ** ******** ** *** ***** ****** ********* *********

The **** to **** value ***** products ** summarised ** Figure *.*. It ** assumed **** the ***-weather

*AW* tires ******* to *** ***** standard, ******* the ***-season *AS* tires ** not. There *** many

********** dimensions ***** can *** to ********** tire **** and ******* value* these *** include

***-road *********** (********* for SUV *****) as **** as ******** technologies **** as *****

reduction* run **** systems ***.

Figure 7.1 - PC and SUV Subtype Differentiation Overview




7.2.2 Motorcycle and Scooter

Within *** two ***** segment* radial ********** tires *** seen ** value*added ********. This ******

distinguishes ******* motorcycle *** scooter ***** as **** as ******* radial *** bias ************

for *** two *****.

RCCL ******* that *** is **** in ********** radial ***** and *** in *** lower ***** products.

7.3 MARKET POSITIONING The market positioning of tires is an important factor when considering R&D effort and underlying

material utilisation.

RCCL’s ******** for *** use ********* a **** strong ************ with **** market ***********.

This is explained in the following sections:

7.3.1 Manufacturer’s Tier Level

Tire ************* can ** defined ** tiers* this ** typically **** via ***** positioning *e.g. premium

***** versus ******* brand*. For *** purposes ** this ******, tier ***** is ***** upon *** tire

************** ability ** supply ***** with ** tires ** well ** the ******* technology ***** of ***

company. There ** some ********* between **** I *** tier ** companies. In ***** cases *** tier **

company ** allocated * specific ***** of ** and **** I ** volume* this ** done ********* to *** plant

*** tire ******* (* tier I ******** may **** budget ***** which *** also ******** accordingly*. Please

**** review ******* *.*.

From * technological ********* the **** I ********* are *** most ********* and *** therefore *****

defined* examples ** tier ** and **** III ********* are *****, it ** not ********* to ******* details

** all ********* falling **** these **********.

Table 7.1 - Manufacturer's Tier Level

Tier Definition Companies

* ******* *********** ********** ** ** ***** ** ******* ********** ****** ** * **** ***** ** **** ***** *** *** *****. ***/** *** ********** ** ********** ******* ** ***** ***** ** ********* **.g. **** ***********).

*********** ******** ******** *********** ******* *******

***** ******** **** ******** ******

** ******* ******* ** ***** ** ******** *** ***** *** **** ***** *********** ** *** *********** ******.

****** ****** *

*** ***** ******* ** ***** *** ****** ****** *********** ** *** *********** ******.

*** ********* ******** ***** **** *




7.3.2 OE Market

A ******* driver *** performance ***** use ** tires ************ for *** Original ********* market.

These ***** are ********* optimised *** performance ** meet *** exacting ********* of **********

manufacturers. Performance ***** use ** significantly ****** for ************* supplying **** the **

market *******.

The ** segment ** also * strong ****** for ********* complexity ** use ********. This *********

means **** specific ********* and ****** are **** for ********** tire *** types *** brands. This

***** of ********** is ********* highest ******* the ****** manufacturers.

7.3.3 RP Market

The *********** tire ****** represents * more ******* segment **** a ************* viewpoint. Tire

*********** resin *** in **** segment *** significantly ****** for **** manufacturers ****** in ***

OE *******. The ****** for **** is *** cascade *********** effect ***** technology *** be

*********** down ******* ranges.

Resin *** was **** found ** be **** substantial *** tire ************* with * broad ***** of *******

offerings ***** allows ********** transfer ****** product ******. Examples ** this *** tire

************* active ** racing **** development ***** transfer *** be **** to *** tires.

Manufactures **** limited **** ranges ***/or ****** reach *** utilise **** little *****tread ******.

7.4 GEOGRAPHICAL INFLUENCES Tire ***** composition *** vary **** region ** region* even ****** similar **** types *** subtypes.

RCCL’s ******** found ****** geographical ********** relating ** performance ***** use.

The ******* for ***** differences *** explained ** the ********* sections*

7.4.1 Performance Requirements

Regional *********** in *********** requirements *** related ** a ****** of ******* including*

*******/*********** conditions

******* ******

******* *****

**** ***** *** *********

Examples ** regional *********** include *** high ******** on *** grip ** Europe ***** contrasts

**** comfort *** wear ******** in ***** America. These *** of ****** generalisations ***** also

****** upon ******** tire *** types* however **** are ******** when ********* similar **** sub

*****.

7.4.2 Compounding Differences

From * tread *********** these ******* can ********* lead ** significant *********** in **********

tread ******** technology. An ******* of **** is *** premium ****** on **/SUV *** grip ***********

in ****** relative ** some ***** regions. This *** led ** tread ********* in ****** with **** filler ***

plasticiser ********. These ********* offer **** opportunity *** plasticiser ************ by ******.




A ******** to **** is *** PC*SUV ******* tire ***** in ***** America ***** have ************ had

**** lower ****** loadings **** correspondingly ******* plasticiser ******* and ********* reduced

*********** for ************ by ******.

When *********** light ***** and ***** tires *** relatively *** filler ******* typically ***** in *****

types ******* the *********** with ******* to ***** use. The ***** performance ******* are ****

significantly ********* with **** emphasis ** wear *** durability ***** regional *********** in

******* temperatures *** also **** a ***** impact ** compound ******.

7.5 EXTERNAL DRIVERS A ****** of ******** factors *** influence *** use *** development. These ***** material

***********, including *** use ** low *** oils* tire ***** and **********/sustainable ************.

The *** of *** PAH **** was ****** in ******* *.*, the other ***** are ******* in **** section.

RCCL’s research found strong external driver influence on current and potential TPR use.

7.5.1 Tire Labelling

The ******* status ** consumer **** labelling ** region ** presented ** Figure *.*. This ***** that

****** and ***** Asia *specifically ***** and ***** Korea* have ****** tire ********* schemes. The

******* upcoming ****** is *** implementation ***** in ***** and ******** legislation ** the ***.

The *** implementation ** by ** means *** in ***** and *** already **** pushed **** several *****.

Figure 7.2 - Tire Labelling Status by Region

The ******** and ***** Asian ****** give ****** emphasis ** both ******* resistance *** wet ****,

the ***** version **** have ******* emphasis ** these **********. These ********** provide

******* for **** to ******** wet **** while *********** or ******** rolling ******. TPRs **** allow

******* in ***** approach* allowing **** manufacturers ****** formulation *** performance *******.

These ****** should ** considered ** parallel ** the ******* already ****** in ***** *.* to *.*.




7.5.2 Sustainable Developments

From a raw material perspective there are three key points to company sustainability targets:

*********

o **** ** ***** ** ***** **** ******** *** **** ***********. *********** ******

******* ***** ** ********** *********** **** ************ **.g. *******).

*******

o **** ******** **** ******** ** ** ******** **** **** *** ****/******* production.

*****

o **** ** *** *********** *********, ***** ********** ********* *** ****.

1 Renewable natural resources are natural resources that, after exploitation, can return to their previous stock levels

by natural processes of growth or replenishment.

The ***** factors ***** are ************ into ******* targets. A ****** of **** of *** top ** tire

********* and ******* is ********* in ***** *.*.

Table 7.2 - Tire Company Sustainable Targets (Most Recent Publication)

Company Targets Notes

*********** ****** ****: ***% *********** ********* ****-****** & **** ****

******** **% *********** ******* ** **** ***% ** ***** ******** ****** ****** * ****** ****

****: **% *********** ******* ** ***** **% ** ** * ********* ***, *% ********

******** ******* *** **** **** ****** ********* ******

*********** ****** ********** ** ****

*********** ******** *********** *****: ********* ****** ****** ******* ******

******** ***% renewable ** **** ***% renewable ** **** ***% fossil ***** ** **** ***% fossil ***** ** **** ****** ***% by **** **** ***% by ****

*******: ********* ** **% *********, *% ******** ********* ** **** *****) **% *********, *% ********

* ** is *** clear ** these ******* are *** all ******* lines. Cinturato ** premium *** tire.

Review ** Table *.* reveals **** each ******* has ******* goal ***** based ** reduction ** material

***, sustainable ******* and *******. The ********** company ******* differ ******, from ********

target ******, to ********* levels ** undefined ******* with ******* developments. It ** clear*

however* that ******** development ** gaining ******** and ** likely ** accelerate ** the *****-

medium **** in ***** for ********* like ********* and ******** to ******* their *******/vision.




The ***** factors ******* impact ** future *** prospects. Tire ********* have ********* focused **

the ******* volume ********* to **** maximum ********. TPRs **** high ******** loadings *****

to ***** tire *********, therefore **** are ******* attracting ******* for *********** content.

Many ** the *** tier **** companies **** strategically ****** ‘**** products. These ******** primarily

*** to ***** the ***** via ******* energy ***** during ***. Several ** the *** tire ****** have *****

the ******* of *Eco’ ** incorporate ***** own ******* values* this ****** low ***** manufacturing*

use ** non*oil ******* materials* use ** ingredients **** low *** levels **** numerous ***** options.

These *** products ********* a ***** but ********* significant ******** of *** level ***********

product *******. This ** an ******* area *** naturally *******, sustainable ******** such ** terpene

********. A ********* of ************* and ****** fitting **** category *** displayed ** Table *.*.

It ****** be ***** that **** tire ********* also ***** brand* therefore * particular ***** will **** a

***** of ******* which **** include *Eco’ ******* indicated ** a ******* manufacturer *****.

Table 7.3 - Top Tier Manufacturers' Eco Labelled Tire Examples (non-exhaustive)

Manufacturer Brand Description

*********** ****** ****** ******** ***-******** performance ******* ****** **** ********** *** ******. ** ****** *** ******* ******* **********, ***** ** **** ******** **** **********. ****** **** ******* *** ********** ** ******* ****** ******* .

******* ******* ******** ** ***** ** ******** **** *********, *** *****, **** **** *** *** ************* ******.

******** ****** ******* *** ******* **********.

******* ****** ******** **** ***** Enasave *** *******)

**** ********** **** *********.

***** *** ******* *** ******* ********** ****.

******** ******** ************ ******** ****** ** ***** **** *** ******** ** ******* ***************, ***** *** ******** ******** ********* *** ******* *** ***** ********.

7.6 COMPETING TECHNOLOGIES Tire ***** compound **** is ******* an ******* in *********. Development ******* the ******* of

**** properties *** performance *******, some ** which **** opposite *******. The **** known **

these ** the ** called *magic *****of ****, rolling ********** and *** grip. legacy ******* for **/SUV

******** carbon ***** compounds ***** only *** of ***** three ******* could ** improved ** any

*** time. The ***** of ****** reinforced ***** compounds *** to *** possibility ** optimising ***

three ** these ****** (**** wear was ****** problematical*.

Currently ***** are **** options ***** to *** tire **** to **** the ******* balance ** properties.

Consideration **** clearly ** given ** the ***** design* compound ****** and ****** technologies. A

***** of ***** options *** well ******* synergistically **** other *****, therefore *** permutations

*** combinations ****** almost *******. Primary ******* include *** following *no **********

order**




***** ******

o ** ***** ********

******** ******* ********** ** * **********

o ******** *******

******** *********

****** **********

o ***** **************

*****-**** (***********)

*********** *********)

o ***** ************

*****-*****

*****-****

****** **********

o ********

o ******

o ******** *****

o ***** ********** ************)

******* **********

o *** **

*********

********

o **********

********** **

********* ***** **********

o **** **

************

o ********

o *********

**** *** ********

********** *********

o ****** *** *******)

o ****** *** *********)

o ********* *** *********)

********** *******

o ******** * ************)

o ***** *** ********** *****)

******* ****

o ***********

o ************

o ***********

*******




o **** ******* ******

o ********** ******* ******

******

****** *****

******

Because ** the ********* of ******* available ** is *** easy ** determine ***** that *** directly **

competition. Those ***** may ********* affect ****** use ** tire ***** performance ****** are*

***** ************, ****** *****-***** or *****-****. **** ***** ****** *** *****

****** ** *********** ***** *** *****

****** ********** ************ **** ****** *** *********** *** *********** ******

***** ******* ******** *** ******** ********** **********

*** ** ******** *** ******** *********** ********** *********** ******* *** *** **

**** *************** **** *** ****** ****** ******* ***** surface ******) ** *******

********* ******* *********** ***** ****** *** *********** *** *********** ******

******* **** *** ******** *** *********** *** ****** ** *** ************ *** **

************ ** *** ***** *******

RCCL *** estimated *** current ********* with ******* to *********** compounding **********

and *********, this *** been ********* against **** life ***** data **** confidential *******.

Forward ********* have **** made ************* of ***** use.

This is discussed in Section 8.7.

7.7 TPR RELATED PATENT REVIEW FOR SELECTED TOP TIRE MANUFACTURERS RCCL ******** recent ****** literature ***** TPR ******* materials *** the ***** or **** of ***

application ************. Additional ********** was ****** on ****** applications ***** tire

******* was *********, this ** indicated ** ‘** in the ** column. Tire ********* typically ***** a *****

of ******, those ********* below *** based ** preferred ******* in *** patents.

The following abbreviations are used for performance characteristics:

Key Description Key Description

AGE Maintains performance with age SG Snow grip

DG Dry grip STB Steering stability

DUR Durability including chip/cut/tear resistance

TR Temperature range (reduced dependence)

GRP Grip generic term (covering WG, DG and possibly IG, SG)

WG Wet grip

IG Ice grip WR Wear resistance (abrasion resistance)

PRO Processability (viscosity, workability, flocculation)

[] Property should not be affected




Tire ******** development ********* requires *** improvement ** one ** more **********. It **

generally ********** understood **** all ***** important ********** should ****** equal ******

these ************. Certain ****** of **********, for ******* WG* DG* IG* SG *** particularly

********* to *******, therefore ******* developments *** require *********** in ** while **

remains ********, this ** indicated ** DG *WG** but **** not ***** that ***** key ***********

characteristics *** be *******.

The following summaries are not exhaustive, they are intended to show typical activities.

Bridgestone’s *** related ******* are ********* in ***** *.*. These ******* cover **/SUV ***** and

* wide ***** of ********. The **** recent ******* are ******* on **** performance *******

balancing **, RR* DG *** STB ** well ** total ******* of *********** for ** tires. Patent **********

suggests *** of ************* HC ***** resins.

Table 7.4 - Bridgestone TPR Related Patents




Continental’s *** related ******** is ********* in ***** *.*. Specific **** types *** tire *******

were *** generally ******* in *** patents. Patent ********** suggests *** of ** based ******.

Table 7.5 - Continental's TPR Related Patents

Goodyear’s *** related ******** is ********* in ***** *.*. There ** a ****** emphasis ** AW

*********** with ** increasing ***** of ***** type ***.

Table 7.6 - Goodyear's TPR Related Patents




Hankook’s *** related ******** is ********* in ***** *.*. The ***** is ** UHP *** HP ****

performance **** Terpene ***** materials ********* most **********.

Table 7.7 - Hankook's TPR Related Patents

Kumho’s *** related ******** is ********* in ***** *.*. The ******* show * wide ***** of *****

types **** a **** frequency ** sustainable *******.

Table 7.8 - Kumho's TPR Related Patents




Michelin’s *** related ******** is ********* in ***** *.*. Michelin’s ******** has * high *********

of ******* related ****.

Table 7.9 - Michelin's TPR Related Patents

Pirelli’s *** related ******** is ********* in ***** *.**. Pirelli’s ******** is *** transparent. There

**** a ****** of ******* related ** special ****** processes **** TPRs.

Table 7.10 - Pirelli's TPR Related Patents




Sumitomo’s *** related ******** is ********* in ***** *.**. Sumitomo *** prolific ****** publishers.

Terpene ****** have ** increasing ********* in **** recent *******.

Table 7.11 - Sumitomo's TPR Related Patents

Toyo’s *** related ******** is ********* in ***** *.**. Toyo *** a ****** focus ** mixing **** TPRs

***** development ** less ***********.

Table 7.12 - Toyo's TPR Related Patents




Yokohama’s *** related ******** is ********* in ***** *.**. Yokohama **** a **** frequency **

terpene ******* patents.

Table 7.13 - Yokohama's TPR Related Patents

Additional *** trends ** patent ********** include ********** **** ********** where *** is *******

with *** prior ** mixing. There **** also * number ** investigations ***** resins **** ***** ****

polymers. One ****** area ** concern ******* to ** handling ** compounds **** high ***** contents.

Table 7.14 presents a summary of resins mentioned by tire company patents. This list is non-exhaustive

and should be used for directional guidance only.

Table 7.14 - Resins Mentioned by Tire Company Patents (Non-exhaustive)

Tire Company Resin Company Type Tradename

*********** ***** ******** **/** *-*** RD104

*********** ***** ******** ** *-*** RA100

*********** ** ****** *** ** ******* ********** ***

*********** **** *********** **** ******* ****

*********** **** *********** ** ****** *****

*********** ********** **/** ******

*********** ****** **************

** *** ******* ***

*********** ** ***** *********** *******

*********** ****** ****** *** ***** ******* **

*********** ******** ******** ******* ****** ** ******** ****

*********** ********** ** ******* ****

*********** ****** ********* *** *******

******** ****** ******** ** **/******* ***** ****** **




******** *** ******* ******* ********* ** ***

******** *** ******* ******** ********* ****

******** ******* ******* ******* *** ****

******** ******* ******* ******* ******

******** ******* ******* ******** ******** **-****

******** ******* ******* ******** ** ****

******** ******* *********-****** ******* ***

******** *** ******* ******** ********** ****

******** ******* ******* ******** ******** ******

******** ******* ******* ******** ******** ******

******** ********** ****/** ******* ****

******** ******* *** ***** ****

******** ******* *** ****** *****

******** ******* *** ******** ****

******** *** ******* ********* ****

*********** ******* ** *** mod* ******** ****

******* *** ******* ******* ********* ***** ******** ******* *********-****** ***, ***, ***, ****

******** ******* *************

** ******** ***** *-*** AS

******** ******* *** ******** ****

******** ******* ******* ******** *** **

******** ******* ******* ******** ******** ** ****

******** ******* ******* ******** ******** *****

******** ******** ******** *******-** ** **-**

******** *******

******* ***** **

******** ** *** * ****** **** ** ********** *******

******** ******* ******** *********-****** ***

******** ******** ******** ******* *****

******** ** ****** *** *********-****** ********** ****

******** ******* *** ********* ****

******** ******** ******** *******-** **-***, TO****

******** ******* **-****** **** ******** ******* **-****** ***

******** ****** ********* ******-*** *******

**** ******** ******** ******-************ ******** **-*****, PR12686

**** ****** ******** *********** ****** ****

**** ******* ******* ****** *****

***** ***** **** ** *-**




7.8 TPR RELATED TIRE BRAND ANALYSIS FOR SELECTED TOP TIRE MANUFACTURERS This ******* focuses ** RCCL’s ******** tying ****** to ******** usage. This ** done ** assessing

**** company ********, annual *******, product ********** and **** outlet *********. Tire

********* generally ******* technologies ***** are ************ into * brand *** are **** expanded

** the ****** with ********** brands *** technology ************. Technologies **** evolved ** be

*****-faceted* using * range ** materials*processes*designs.

Note* Most **** companies ******** both ***** resins *** liquid ******** as *Resins’. This ***

sometimes **** include ***** polymer *****.

Bridgestone’s *** related ****** are ***** in ***** *.**. Bridgestone’s ********* compounds ****

developed ** eliminate ***** from *** tire ******* patch **** travelling **** ice. The *********

technology ******** C* resin ***** with ***** materials. This *** been ******** across * wide *****

of ****** since ***** adoption. An *Improved **** Adhesion’ ********** was ******* in ****

stipulating ***** usage* this *** been ******* across ******** brands.

Table 7.15 - Bridgestone's TPR Related Brands

Continental’s *** related ****** are ***** in ***** *.**. Continental’s ****** technology **** resins

***** with ***** materials ********* specialist ************, these *** incorporated **** multiple

******. They **** specify ****** performance ***** use ** their **** AllSeasonContact *****.

Table 7.16 - Continental's TPR Related Brands




Goodyear’s *** related ****** are ***** in ***** *.**. Goodyear ******** resin *** across * broad

***** of ****** and **** subtypes.

Table 7.17 - Goodyear's TPR Related Brands

Hankook’s *** related ****** are ***** in ***** *.**. Hankook ******** adopted *Aqua ****

Compound’ ** their ****** and ******* brands.

Table 7.18 - Hankook's TPR Related Brands




Kumho’s *** related ****** are ***** in ***** *.**. Kumho ******* resins *** their ***** brand.

Table 7.19 - Kumho's TPR Related Brands

Michelin’s *** related ****** are ***** in ***** *.**. Michelin ** not ********* resins **** brands.

Table 7.20 - Michelin's TPR Related Brands

Pirelli’s *** related ****** are ***** in ***** *.**. Pirelli ********* use ** resins ** their ****

Scorpion ***** for ******** performance.

Table 7.21 - Pirelli's TPR Related Brands




Sumitomo’s *** related **** are ***** in ***** *.**. Sumitomo ** not ******* resins **** brands.

Table 7.22 - Sumitomo's TPR Related Brands

Toyo’s *** related **** are **** in ***** *.**. Toyo ***** resin ** natural ***** with *** ** ** brand.

Table 7.23 - Toyo's TPR Related Brands

Yokohama’s *** related ****** are ***** in ***** *.**. Yokohama ********* resins **** their

*********** technology ***** has **** extended ****** a ****** of ******. They **** also ****

terpene ***** resins **** ****, *********** use ** ***** *** in * large ****** of ***** brands.

Table 7.24 - Yokohama's TPR Related Brands




8 TIRE TREAD PERFORMANCE RESIN MARKET VOLUMES 2011 TO 2040

This section presents detailed TPR market demand determined by the methodology and market research

discussed in previous sections. All values are presented as thousands of metric tonnes (kMT).

8.1 TOTALS FOR ALL RESIN TYPES This section provides totals for all TPR types.

8.1.1 Global

Global ****** volume *** all *** types ** presented ** Table *.*. The **** total ****** is *********

at ***.* kMT. CAGR *** the **/** period ** estimated ** *.*%, this reduces **** successive **** year

*******, but ** higher **** the ******* tire ******** unit ****** rate.

Table 8.1 - Global Market Volume for All TPR Types 2011 to 2040

8.1.2 Regional

Regional market volumes for all TPR groups are presented in Table 8.2

*** * ** **** ****** (***): N. Asia ***.6* > ****** (**.4) * China ***.2*

*** * ** **/** growth (***): China ***.1* >> ****** (*.3) * N. Asia **.1*

*** * ** **/** CAGR (%):*China (**) > Africa **) > ***** (*)

Table 8.2 - Regional Market Volume for All TPR Types 2011 to 2040




8.2 TOTALS BY RESIN TYPE This section provides totals for TPR types.

8.2.1 Global

Global market volumes by TPR type are presented in Table 8.3.

Top * TPRs ** **** ****** (***): AMS ***.9* > ******* (**.7) * C* (**.0)

Top * TPRs ** **/** growth (***): Terpene ***.8* > *** (**.6) * C* (*.2)

Top * TPRs ** **/** CAGR (%):* C* (*.7) * Terpene **.6* > ***** (*.9)

Table 8.3 - Global Market Volume by TPR Type 2011 to 2040

8.2.2 Regional

Regional market volumes for AMS types are presented in Table 8.4.

Top * Regions ** **** ****** (***): Europe ***.5* > *. Asia ***.0* > ***** (*.3)

Top * Regions ** **/** growth (***): China **.3* > *. Asia **.1* > ***** (*.0)

Top * Regions ** **/** CAGR (%):*China (*.3) * Africa **.9* > ***** (*.9)

Table 8.4 - Regional Market Volume for AMS Types 2011 to 2040




Regional market volumes for C5 types are presented in Table 8.5.

Top * Regions ** **** ****** (***): China **.1* > *. Asia **.1* > ****** (*.8)

Top * Regions ** **/** growth (***): China **.4* > ****** (*.2) * N. Asia **.6*

Top * Regions ** **/** CAGR (%):*Europe (**.0) * China ***.6* > ****** (*.7)

Table 8.5 - Regional Market Volume for C5 Types 2011 to 2040

Regional market volumes for C9 types are presented in Table 8.6.

Top * Regions ** **** ****** (***): China **.1* > *. Asia **.9* > ****** (*.9)

Top * Regions ** **/** growth (***): China **.7* > ****** (*.8) * India **.5*

Top * Regions ** **/** CAGR (%):*China (**.3) * India **.4* > *. Asia **.0*

Table 8.6 - Regional Market Volume for C9 Types 2011 to 2040




Regional market volumes for HDCPD types are presented in Table 8.7.

Top * Regions ** **** ****** (***): N. Asia **.4* > ****** (*.8) * China **.7*

Top * Regions ** **/** growth (***): N. Asia **.5* > ***** (*.4) * Europe **.6*

Top * Regions ** **/** CAGR (%):*Africa (**.4) * S. America ***.2* > ***** (**.4)

Table 8.7 - Regional Market Volume for H-DCPD Types 2011 to 2040

Regional market volumes for Terpene types are presented in Table 8.8.

Top * Regions ** **** ****** (***): N. Asia **.3* > ****** (*.9) * China **.8*

Top * Regions ** **/** growth (***): China **.4* > ****** (*.9) * N. Asia **.8*

Top * Regions ** **/** CAGR (%):*Africa (**.4) * China ***.6* > *. East ***.5*

Table 8.8 - Regional Market Volumes for Terpene Types 2011 to 2040




8.3 TOTALS BY TIRE TYPE This section provides TPR resin market volumes by tire type.

8.3.1 Global

Global ****** by **** type *** presented ** Table *.*. PC *** the ******* **** ******, by **** the

** and *** volume ** similar **** SUV ****** being ************* higher ** ****.

Table 8.9 - Total Market Volume by Generic Tire Type 2011 to 2040

8.4 TOTALS BY TIRE SUBTYPE This section provides TPR market volumes by tire subtype.

8.4.1 Global

TPR market volume share by PC subtype is presented in Table 8.10.

Top * subtypes ** **** ****** (***): **** (**.9) * S*T ***.5* > **-AS ***.0*

Top * subtypes ** **/** growth (***): **** (*.9) * S*T **.8* > **-SM **.9*

Top * subtypes ** **/** CAGR (%):* **T **.7* > ***-AS **.4* > **** (*.4)

Table 8.10 - Total Market Volume by PC Subtype 2011 to 2040




TPR market volume share by SUV subtype is presented in Table 8.11.

Top * subtypes ** **** ****** (***): **** (**.8) * ***AS ***.2* > *+T **.8*

Top * subtypes ** **/** growth (***): *+T **.7* > **** (*.5) * HP*** **.1*

Top * subtypes ** **/** CAGR (%):* ** ***.3* > **-** **.7* > **** (*.6)

Table 8.11 - Total Market Volume by SUV Subtype 2011 to 2040

TPR ****** volume ***** by ****** subtype ** presented ** Table *.**. MC*R *** the *******

shared *** highest ********* volume ******.

Table 8.12 - Total Market Volume by MCSCTR Subtype 2011 to 2040




8.5 COMPETITIVE MATERIALS Directly *********** material ******* were ******* from *** **** ******** estimate* adjusted **

the **** of ******** of **** ******** vehicle ***** tire ************. **** **** requirements ****

estimated ***** RCCL’s ***-down ********** production ***** for ** and *********** (**) tires.

The ********** here ** that *** tires ********* the **** demanding ********** development ****

an ******** on ** and ****. Low ********* weight ******** and ********** plasticisers *both

********* functionalised* allow *********** flexibility ** optimise ** and **** without *********

to ***** performance ***************. These *********** options *** be **** in *********** with

* TPR* however* to ******* the ****** RR* TPRs *** be *******.

Also *** the *********** made ** assessing *** BEV **** growth ** Section *.*.

8.5.1 Global

The ****** volume *** competitive ********* has **** estimated *per ***** method*. This ******

could ** considered ** represent *** maximum ********* impact ** forward *** volumes* however*

this ***** assume * part*for*part ***********.

Table 8.13 - Global Market Volume for Competitive Materials 2011 to 2040

kMT Year

2017 2020 2025 2030 2035 2040

Volume *.* *.* **.* **.* **.* ***.*

An ******* estimate *** the ****** of ******** technology *** made ** determining ****** BEV ****

units *** the ** and ** tire ********. These ******** were **** to ****** the ********* proportion

** BEV *** for **** of *** two *******. The ******* of **** are ******* in ***** *.** below.

Table 8.14 - Estimated Impact of Competing Technologies (BEV Tire Development)

kMT TPR Year

Segment 2011 2015 2020 2025 2030 2035 2040

BEV Tires

** *.*% *.*% *.*% *.*% **.*% **.*% **.*%

** *.*% *.*% *.*% *.*% *.*% *.*% **.*%

******* *.*% **.*% **.*% **.*%

*.*% *.*% *.*% **.*%

TPR Totals

** **.* **.* **.* **.* **.* **.* ***.*

** **.* **.* **.* **.* ***.* ***.* ***.*

TPR - %

BEV

** **.* **.* **.* **.* **.* **.* **.*

** **.* **.* **.* **.* ***.* ***.* ***.*

***** **.* ***.* ***.* ***.* ***.* ***.* ***.*

Impact *.* *.* *.* *.* **.* **.* **.*




9 TIRE TREAD PERFORMANCE RESINS MARKET PRICES & MARKET VALUES

This section looks at TPR average market prices and uses this information to generate regional and global

market values. Prices are average delivered prices in USD/MT. Values are in millions of USD (MM$).

9.1 REGIONAL MARKET PRICES Regional ********* market ****** were ******** from * range ** confidential *******. Market

******* is ********* upon ******, volume ***** and ******** resin **** and ************,

therefore ***** prices ****** be ********** as *********** only.

Pricing ** indicative ** TPR ***** modified *** enhanced ***********, the ******* pricing ** the

**** range ** TPR ***** may ** lower.

9.1.1 APAC

Table *.* presents ******* pricing ** TPR **** for ****. Pricing *** HDCPD*Terpene*AMS ***** is ****

to ** similar *** higher ** C* and ** types. C* types *** the ****** pricing.

Table 9.1 - Average 2017 to 2019 Prices by TPR Type for APAC

TPR Type

Price, USD/MT

2017 2018 2019

AMS **** **** ****

C5 **** **** ****

C9 **** **** ****

HDCPD **** **** ****

Terpene **** **** ****

9.1.2 Europe

Table *.* presents *** average ******* by *** type *** Europe. Terpenes *** the ******* pricing

******** by ***** and **** AMS *****.

Table 9.2 - Average 2017 to 2019 Prices by TPR for Europe

TPR Type

Price, USD/MT

2017 2018 2019

AMS **** **** ****

C5 **** **** ****

C9 **** **** ****

HDCPD **** **** ****

Terpene **** **** ****




9.1.3 USMCA

Table *.* presents *** average ******* by *** type *** USMCA. Terpenes *** the ******* pricing

******** by ***** and **** AMS *****.

Table 9.3 - Average 2017 to 2019 Prices by TPR Type for USMCA

TPR Type

Price, USD/MT

2017 2018 2019

AMS **** **** ****

C5 **** **** ****

C9 **** **** ****

HDCPD **** **** ****

Terpene **** **** ****

9.2 MARKET VALUES This section uses the average market prices from Section 9.1 to generate regional and global market

values. The average pricing from the three regions was assigned to the appropriate market volume regions

(e.g. APAC pricing was assigned to China, India, North Asia and South Asia).

Note: 2030 and 2040 values use the estimated volumes for the respective year and the unadjusted 2019

average market price (i.e. not inflation adjusted)

All values are presented in millions (MM) of United State dollars ($).

9.2.1 All Resin Types

This section presents market values for all TPR types.

Total ****** value *** all *** types ** presented ** Table *.*. The **** market ***** was *********

to ** $*** MM, **** is ******** to ******** to **** by **** (***** 2019 pricing*.

Table 9.4 - Global Market Value All TPR Types 2019, 2030, 2040

MM$ CAGR

2019 2030 2040 19/30 30/40

Global *** *** *** *.*% *.*%




Global ****** value ** TPR **** is ********* in ***** *.*. AMS ****** had *** highest **** market

***** followed ** Terpene *** then ***** types. Ranking *** potential ****** to **** (**$) is:

Terpene ***) > ***** (**) > AMD ***) > ** (**) > C* (**)

Table 9.5 - Global Market Value by TPR Type 2019, 2030, 2040

MM$ CAGR

TPR Type 2019 2030 2040 19/30 30/40

AMS *** *** *** *.*% *.*%

C5 ** ** *** *.*% *.*%

C9 ** ** ** *.*% *.*%

HDCPD ** *** *** *.*% *.*%

Terpene ** *** *** *.*% *.*%

Regional market values for all TPR types are presented in Table 9.6.

Top * regions ** **** ***** (**$): ****** = *. Asia ****) > ***** (**)

Top * regions ** **/** growth (***): ***** (***) > Europe ***) > *. Asia ***)

Top * regions ** **/** CAGR (%):* China **.8* > ****** (*.9) * N. Asia **.8*

Table 9.6 - Regional Market Values All TPR Types 2019, 2030, 2040

MM$ CAGR

Region 2019 2030 2040 19/30 30/40

Africa * * * *.*% *.*%

China ** *** *** *.*% *.*%

CIS ** ** ** *.*% *.*%

Europe *** *** *** *.*% *.*%

India * ** ** *.*% *.*%

M. East * ** ** *.*% *.*%

USMCA ** ** ** *.*% *.*%

N. Asia *** *** *** *.*% *.*%

LATAM ** ** ** *.*% *.*%

S. Asia * ** ** *.*% *.*%




9.2.2 By Resin Type

Regional market values for AMS types are presented in Table 9.7.

Top * regions ** **** ***** (**$): ****** (**.0) * N. Asia ***.6* > ***** (**.4)

Top * regions ** **/** growth (***): ***** (**.8) * N. Asia **.9* > ***** (*.3)

Top * regions ** **/** CAGR (%):* China **.8* > ***** (*.2) * Africa **.0*

Table 9.7 - Regional Market Values for AMS Types 2019, 2030, 2040

MM$ CAGR

Region 2019 2030 2040 19/30 30/40

Africa *.* *.* *.* *.*% *.*%

China **.* **.* ***.* *.*% *.*%

CIS *.* *.* *.* *.*% *.*%

Europe **.* **.* **.* **.6% *.*%

India *.* *.* *.* *.*% *.*%

M. East *.* *.* *.* *.*% *.*%

USMCA **.* **.* **.* *.*% **.5%

N. Asia **.* **.* **.* *.*% *.*%

LATAM *.* *.* *.* *.*% *.*%

S. Asia *.* *.* *.* *.*% *.*%

Regional market values for C5 types are presented in Table 9.8.


Top * regions ** **/** growth (***): ***** (**.8) * N. Asia ***.4* > *. Asia **.6*

Top * regions ** **/** CAGR (%):* China **.7* > ****** (*.2) * Africa **.3*

Table 9.8 - Regional Market Values for C5 Types 2019, 2030, 2040

MM$ CAGR

Region 2019 2030 2040 19/30 30/40

Africa *.* *.* *.* *.*% *.*%

China **.* **.* **.* *.*% *.*%

CIS *.* *.* *.* *.*% *.*%

Europe **.* **.* **.* *.*% *.*%

India *.* *.* *.* *.*% *.*%

M. East *.* *.* *.* *.*% *.*%

USMCA *.* *.* *.* **.2% *.*%

N. Asia **.* **.* **.* *.*% *.*%

LATAM *.* *.* *.* *.*% *.*%

S. Asia *.* *.* *.* *.*% *.*%




Regional market values for C9 types are presented in Table 9.9.


Top * regions ** **/** growth (***): ***** (**.2) * S. Asia **.0* > ***** (*.5)

Top * regions ** **/** CAGR (%):* China ***.1* > *. Asia **.8* > ***** (*.7)

Table 9.9 - Regional Market Values for C9 Types 2019, 2030, 2040

MM$ CAGR

Region 2019 2030 2040 19/30 30/40

Africa *.* *.* *.* *.*% *.*%

China **.* **.* **.* **.*% *.*%

CIS *.* *.* *.* *.*% *.*%

Europe **.* **.* **.* *.*% *.*%

India *.* *.* *.* *.*% *.*%

M. East *.* *.* *.* *.*% *.*%

USMCA *.* *.* *.* *.*% *.*%

N. Asia **.* **.* **.* **.3% *.*%

LATAM *.* *.* *.* *.*% *.*%

S. Asia *.* *.* *.* *.*% *.*%

Regional market values for H-DCPD types are presented in Table 9.10.

Top * regions ** **** ***** (**$): N. Asia ***.3* > ****** (**.3) * China ***.3*

Top * regions ** **/** growth (***): China ***.9* > *. Asia ***.0* > ****** (**.1)

Top * regions ** **/** CAGR (%):*S. Asia ***.1* > ****** (**.6) * China * LATAM ***)

Table 9.10 - Regional Market Values for H-DCPD Types 2019, 2030, 2040

MM$ CAGR

Region 2019 2030 2040 19/30 30/40

Africa *.* *.* *.* **.*% *.*%

China **.* **.* **.* **.*% *.*%

CIS *.* *.* *.* *.*% *.*%

Europe **.* **.* **.* *.*% *.*%

India *.* *.* *.* *.*% *.*%

M. East *.* *.* *.* *.*% *.*%

USMCA *.* **.* **.* *.*% *.*%

N. Asia **.* **.* **.* *.*% *.*%

LATAM *.* *.* *.* **.*% *.*%

S. Asia *.* *.* *.* **.*% *.*%




Regional market values for Terpene types are presented in Table 9.11.

Top * regions ** **** ***** (**$): Europe ***.2* > *. Asia ***.2* > ***** (**.7)

Top * regions ** **/** growth (***): China ***.6* > ****** (**.9) * N. Asia ***.5*

Top * regions ** **/** CAGR (%):*Africa (**.7) * China ***.2* > *. Asia * M. East **.8*

Table 9.11 - Regional Market Values for Terpene Types 2019, 2030, 2040

MM$ CAGR

Region 2019 2030 2040 19/30 30/40

Africa *.* *.* *.* **.*% *.*%

China **.* **.* **.* **.*% *.*%

CIS *.* *.* *.* *.*% *.*%

Europe **.* **.* **.* *.*% *.*%

India *.* *.* *.* *.*% *.*%

M. East *.* *.* *.* *.*% *.*%

USMCA **.* **.* **.* *.*% *.*%

N. Asia **.* **.* **.* *.*% *.*%

LATAM *.* *.* *.* *.*% *.*%

S. Asia *.* *.* *.* *.*% *.*%




10 CONCLUDING REMARKS

Comprehensive conclusions and findings are presented in the Executive Summary (Section 2). This section

provides key top level findings, future considerations and scenarios for extended analysis with clients.

10.1 KEY TOP LEVEL FINDINGS Global market volumes (Table 8.1) for all TPR groups was as follows:

An assessment of competitive materials (Table 8.18) estimated the following trend:

kMT Year

2017 2020 2025 2030 2035 2040

Volume *.* *.* **.* **.* **.* ***.*

Analysis of competitive material growth is subject to higher uncertainty. Volumes indicate competitive

materials have more than a part-for-part replacement rate, a more realistic estimate was made by

eliminating forward TPR volumes for OE and RP BEV tires (Table 2.4).

KMT Year CAGR

2020 2025 2030 2035 2040 20/25 25/30 30/35 35/40

Unadjusted *** *** *** *** *** *.*% *.*% *.*% *.*%

Adjusted *** *** *** *** *** *.*% *.*% *.*% *.*%

Global unadjusted market values for all TPR groups by region (Figure 2.4) were estimated to be:




10.2 FUTURE CONSIDERATIONS This report utilises best estimates for past, present and future markets and technologies. Past and current

estimates are compared against actual usage data to provide a high level of confidence. This provides a

firm platform for future estimates, however, future estimates are clearly subject to a higher level of

uncertainty. RCCL’s system utilises publically announced manufacturing and product mix changes to

adjust future product mix and technology, this accounts for the short term future. The longer term view

has been adjusted by using regional OE and parc determinations from RCCL’s proprietary Automotive Top-

Down model, this has also been used to make a coarse determination of competitive materials.

Due to the high number of input variables and associated uncertainty, RCCL has developed its system to

allow varying scenarios and input parameters. These are discussed in the following section.

10.3 EXTENDED CLIENT ANALYSIS RCCL’s analysis system has been designed based on experiences with a varied range of client market

analysis projects. Many clients require independent market assessments combined with models based

on their own preferred inputs (e.g. automotive production, vehicle parcs, chemical groups/types). RCCL’s

system can easily accommodate this.

Clients who have purchased this report directly from RCCL can benefit from additional analysis based on

their required input done at a reduced RCCL daily rate (contact RCCL directly for details).

Extended client analysis can include one or more of the following:

Adjustments to regional OE automotive production figures and growth

Adjustments to regional RP parc starting figures and growth

Adjustments to tire type/subtype forward growth rates

Alternative regional definitions

Analysis at country/state level (state for certain countries only)

Additional tire types and subtypes

Alternative data views using maps

Please contact RCCL to discuss your individual requirements.




11 APPENDICES

11.1 MARKET SEGMENTATION AND SUB SEGMENTS The following segment and sub segment definitions are used in this report, the items highlighted in red

are included in the scope. Volumes from sub segments are allocated to their parent segment.

Table 11.1 – Tire Types and Subtypes

Tire Type Subtype Tire Type Subtype

All Adhesives PC (Passenger Car)

PC – AS

Aero (Aircraft)

Aero – Radial PC – AW

Aero – Retread PC – Eco

Aero – Xply PC – Eco Electric

Agri (Agricultural)

Agri – Radial PC – HP AS Agri – Xply Large PC – HP SM

Agri – Xply Small PC – Racing

Bicycle Bicycle – Tubes PC – Retread

Bicycle - Tires PC – SM

Curing Curing Bladders PC – SM LRR

Curing Envelopes PC – WT

Flaps Flaps PC – UHP AS

Ind (Industrial)

Ind – Radial PC – UHP SM

Ind – Retread PC – Xply

Ind – Solid SCTR (Scooter)

SCTR – Radial

Ind – Xply SCTR – Xply

Inner Tubes Inner Tubes Small Other Small Other

Kart Kart SUV SUV – AS

LT (Light Truck)

LT – AS SUV – AW LT – Eco SUV – Eco

LT – Retread SUV – HP AS

LT – SM SUV – HP SM

LT – SM – LRR SUV – SM

LT – WT SUV – SM LRR

LT - Xply SUV – UHP AS

MC (Motorcycle)

MC – Radial SUV – UHP SM

MC - Xply SUV – Winter

Military Military TR (Truck)

TR – Radial

OTR (Off Road)

OTR – Giant – Radial TR – Radial – Eco

OTR – Giant – Xply TR – Radial – LRR

OTR – Radial TR – Radial – WT

OTR - Xply TR - Retread

OTR – Retread/Repair TR - Xply

Paints Paints Tweel (UPTIS) Tweel




12 ADDITIONAL DOCUMENTATION

This report is accompanied by an Excel Workbook with data/figures from the pdf report.

Please refer to: RCCL201 – Client Data.

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